Malaysia Morning Wrap | Gamuda Wins RM4.3 Billion Contract for Taiwan MRT Project

The market fell Tuesday after consumer and communications earnings came in mixed. Investors awaiting $Tesla (TSLA.US)$ earnings Wednesday to see if indexes keep growing to all-time highs.After 4 pm ET, the $S&P 500 Index (.SPX.US)$ fell 0.05%, the $Dow Jones Industrial Average (.DJI.US)$ fell 0.02%, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 0.17%.

$GAMUDA (5398.MY)$ and its joint-venture associates have won a RM4.3 billion main design and build contract from the Department of Rapid Transit Systems, New Taipei City Government, for the Xizhi Donghu Mass Rapid Transit (MRT) project in Taiwan. This marks Gamuda's largest engagement in Taiwan since its entry into the market twenty years ago. Gamuda holds a substantial 75% stake in the joint venture, equating to RM3.2 billion of the contract's value. The consortium is also set to perform additional works valued at RM10.8 billion, raising Gamuda's total share to roughly RM8.1 billion. Including the primary contract, the entire project value totals RM15.1 billion.

$AUMAS (0098.MY)$ has entered an exclusive prospecting and contract of works agreement with Aurelius Borneo Mining Sdn Bhd, focusing on gold mining activities. Bahvest’s wholly-owned subsidiary, Wullersdorf Resources Sdn Bhd (WRSB), will exclusively collaborate with Aurelius on gold exploration and mining at Mt Andrassy in Tawau, Sabah, over an area of 18,000 hectares. The profit-sharing agreement allocates 70% of potential gold mining profits to WRSB and 30% to Aurelius.

$GTRONIC (7022.MY)$ announces the resignation of CEO Heng Charng Yee and Executive Director Kang Wei Luen, both citing personal reasons and other commitments. Heng will depart on December 31, while Kang has already stepped down. Yip Wai Chee, currently the Chief Operating Officer, will assume the CEO role starting January 2, 2025.

$TEOSENG (7252.MY)$, experiencing a record high share price of RM2.60, has announced a one-for-one bonus issue of up to 300 million shares to reward its shareholders. The company, a leading egg producer, aims to ensure that post-bonus share prices maintain a minimum of 50 sen, aligning with Bursa Malaysia's listing requirements. Theoretical pricing post-bonus is projected between RM0.8641 and RM1.1615.

Struggling $GOCEAN (0074.MY)$ intends to undertake a RM92.5 million share capital reduction to offset accumulated losses after four consecutive loss-making years. This move will utilize the capital reduction to balance RM60.8 million in losses and create retained earnings of RM31.41 million, as per the latest audited financial statements.

$GESHEN (7197.MY)$, witnessing a 200% increase in share price this year, has received unanimous shareholder approval to acquire a 40% stake in Local Assembly Sdn Bhd for RM48 million in cash. This acquisition marks Ge-Shen’s diversification into electronic manufacturing services (EMS). Additionally, the company's shareholders approved a private placement of 39.60 million shares to raise up to RM91.20 million, funding the acquisition, reducing borrowings, and supporting working capital needs.