Now The News Is Out: The Reason For EG's Rapid Rise To RM1 Billion Cap
$EG (8907.MY)$ Recent Announcement:
The Board of Directors (“Board”) of EG Industries Berhad (“EGIB” or “the Company”) wishes to announce that a wholly-owned subsidiary, SMT Technologies Sdn. Bhd. (“SMTT”) had, on 5 June 2024, secured confirmed purchase order (“PO”) valued at USD117 million for 5G photonics related products from an existing key customer, Customer C.
Customer C is a global industry leader with expertise in industry leading research and development and cutting-edge manufacturing for, among others, optical modules, wireless access broadband, carrier ethernet and edge computing.
The PO is expected to be fulfilled in tranches over the next 12 months.
No wonder EG stock price rose exponentially since 20 June 2024 from ~RM1.44 to reach All Time High of RM2.370 breaching the RM1 Billion market Cap that I posted earlier on. The shareholders who frequent the annual AGM should stop repeating the same boring question (over multiple years) to the Board which personally, I think to be very funny.
The favorite question was " Is EG going to provide door gift to shareholders who attend the AGM?", which the Board always replied "No. EG is not going to provide any door gift as what this is not our practise".
Any door gift will look so small of a value compared to the share performance of $EG (8907.MY)$ in 2024. It will be an interesting to see how far it can go in the coming years. (especially if we get into a Trade War 2.0 era with a Trump2.0 presidency)
Now the price action is indicating a "buy on rumor , sell on news" scenario.
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