SAM Malaysia rises 5.2% on news of US$50m reinvestment plans


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GEORGE TOWN (Aug 3): Airplane parts maker SAM Engineering and Equipment Bhd (SAM Malaysia) rose 27 sen or 5.2% on US$50 million (RM191.5 million) reinvestment plans for its Penang-based plant.

At 10.22am, the shares had increased to RM5.46 before paring loses at RM5.45, making it one of the top five gainers with 68,900 shares changing hands, with a market capitalisation of RM447.74 million

On Friday, Singapore Aeronautics Manufacturing Pte Ltd chairman Philip Yeo said SAM Malaysia would pump in investments for new machines.

SAM holds a 5.91% direct and 62.6% indirect stake in SAM Malaysia via its subsidiary Singapore Precision Engineering Ltd.

“Over the last few years, SAM Malaysia has secured new engine programmes and this will require additional investments of at least US$50 million. SAM Malaysia's cumulative investments to-date in Penang is US$120 million (RM460 million) and the workforce employed is 760," he said.

Year-to-date, SAM Malaysia (fundamental: 2.5; valuation: 2) shares have gone up by 54.4%.

(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.)