KUALA LUMPUR – Boustead Heavy Industries Corp Bhd (BHIC) stock price increased tremendously in six months after securing a RM1.1 billion service contract from the Defence Ministry.
The stock climbed nearly 23% or 11 sen to 59 sen within three minutes of the market opening.
It was trading at 53.5 sen, up 5.5 sen, by 11.05am – with 1.2 million shares changing hands.
BHIC announced yesterday that it had won a performance-based in-service support contract for the Royal Malaysian Navy’s Prime Minister-class submarines.
The defence contractor stated that its wholly-owned subsidiary, BHIC Submarine Engineering Services Sdn Bhd (BSES), had accepted a letter of award from the Defence Ministry.
“A formal contract between the Malaysian government and BSES will be finalised and executed at a later date,” BHIC said in a filing with Bursa Malaysia today.
BHIC added that the contract will contribute positively to the group’s earnings for the financial year ending December 31, 2024. – June 13, 2024