KUALA LUMPUR (Oct 12): Tolls on the Kajang Traffic Dispersal Ring Road (Kajang-SILK Highway) and Duta-Ulu Kelang Expressway (DUKE) will see toll charges increase as much as 80% and 30% respectively, effective from Oct 15 this year.

According to SILK Holdings Bhd's filing with Bursa Malaysia today, the toll rates for all types of vehicles (except buses) will see an increase of 80%.

The filing stated that toll rates for vehicles with two axles and three or four wheels (except buses and taxis) will rise to RM1.80 from RM1, while rates for vehicles with two axles and five or six wheels (except buses) will jump to RM3.60 from RM2.

Accordingly, the highway operator said toll rates for vehicles with three axles or more (except buses) will increase by RM2.40 to RM5.40 from RM3.

For taxis, SILK Holdings said the toll charges will increase to 90 sen from 50 sen, but toll charges for buses will remain unchanged at RM1.

SILK Holdings expects the new toll rate structure to contribute positively to the revenue from toll collection for SILK Highway, although this is expected to be off-set by a reduction in revenue from toll compensation payable to SILK Highway.

"All in all, the implementation of the new toll rate structure is expected to have a positive impact on Group revenue in the medium to longer term," it added.

Aside from SILK Holdings, Ekovest Bhd, the operator of DUKE Highways, also announced new toll rates across all types of vehicles for Ayer Panas, Sentul Pasar and Kg Batu Toll Plazas.

In a filing with Bursa Malaysia today, Ekovest said vehicles with two axles and three or four wheels (except buses and taxis) will be charged RM2.50 starting Oct 15, up from RM2. Drivers for vehicles with two axles and five or six wheels (except buses) will pay RM3.80 instead of the current rate of RM3.

Ekovest also said the toll rates for vehicles with three axles or more (except buses) will increase to RM5 from RM4.

For taxi drivers, the highway operator said the toll charges will increase to RM1.30 from RM1, but toll charges for buses will remain unchanged at RM1.30.

Ekovest said the new toll rates are in line with the Concession Agreement signed with the Government of Malaysia on Aug 12, 2004 for all classes of vehicles except class five, which is for buses.

Trading in Ekovest has been very volatile over the past one year. It shed 34 sen or 28.57% to its one-year intraday low of 88 sen on Oct 6, from a high of RM1.19 on Jan 21.

Meanwhile, SILK Holdings shares inched up one sen or 1.04% to trade at 49 sen after 50,000 shares were traded as at 2.20pm. The counter has been on a decline over the past one year, which saw it fall to its current level from a high of 85 sen recorded on Oct 31 last year.

At 49 sen, SILK Holdings has a market value of RM336.74 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)