SHARES of engineering company PEC have been on a tear lately and a possible reason for that has emerged.
The company said in a bourse filing on Wednesday (Nov 27) that it had been approached by a third party “on a possible transaction” in relation to its shares.
However, it noted: “No decision has been made, and there is no certainty or assurance whatsoever that any transaction in respect of the shares in the company will occur.”
PEC shares have been on an uptrend this year, with a gain of 40.6 per cent so far. However, much of it has come in the past three months. Since hitting a trough of S$0.51 on Aug 27, the stock has risen 46 per cent on rising volumes.
Market watchers say that PEC’s disclosure on Nov 27 could herald the entry of a new major investor.
PEC said that it will make further announcements as and when appropriate. It advised shareholders and investors to refrain from taking any action in respect of their shares in the company which may be prejudicial to their interests, and to exercise caution when dealing in such shares.
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For the second half of its 2024 financial year ended Jun 30, PEC posted a net profit of S$10.8 million, almost trebling the S$3.9 million raked in during the corresponding year-ago period.
The company’s revenue, however, fell 15 per cent to S$204 million from S$240 million the year before.
Earnings per share for H2 FY2024 stood at 4.3 Singapore cents, up from 1.5 cents the year before, with the company recommending an ordinary dividend of 2 cents per share.
The company attributed its better performance in H2 FY2024 to an increase in project and maintenance works from overseas.
It is currently actively bidding for projects and maintenance works in the Middle East, which it sees as a growing market, and believes its strategic investments there could translate into sustained demand for engineering, procurement and construction services and modular projects.
Shares of PEC closed unchanged at S$0.745 on Wednesday before the announcement.
