KUALA LUMPUR (Oct 27): Engtex Group Bhd rose as much as 3.7% on expectation the pipe wholesaler and manufacturer would successfully secure the RM110 million contract to supply pipes for the Langat 2 water treatment plant.
As at 11.15 am today, Engtex gained 3 sen or 1.6% to RM1.94 on trades of 161,600 shares. The stock had earlier hit a high of RM1.98.
The Edge Financial Daily today reported Engtex group managing director Datuk Ng Hook as saying he was confident of the company winning the contract, noting the tender results would be revealed before the end of this year.
A dealer told TheEdge Markets.com that while the news is positive, he opined that the contract amount is not “too substantial”.
“Also, we think that the market has already priced in much of the Langat 2 catalyst,” he told over the telephone.
InterPacific Securities’ remisier Sam Ng highlighted Engtex’s fundamentals are solid as the firm is helmed by a committed management team.
He said Engtex’s Ng, who is the founder and currently owns a 26.15% stake in the firm, was “really committed to the business”.