Daya Materials share price nearly halves on PN17 status even as it bags RM104m contract

PETALING JAYA: Daya Materials Bhd, which saw its share price almost halve upon entering Practice Note 17 (PN17) status, has been awarded a RM104.07 million contract by Penang Specialist Hospital Sdn Bhd.
The stock was the second most actively traded today, with 154.4 million shares changing hands. Trading in the counter was suspended between 9am and 10am to facilitate the PN 17 announcement. At the close, it was down 3 sen or 42.9% to 4 sen.
In a filing with Bursa Malaysia today, the company said its 51%-owned subsidiary Daya CMT Sdn Bhd, accepted the letter of award of the contract for the construction of a new annex 10-storey hospital block in Penang.
The contract includes alteration works and an addition to the existing hospital block with an open car-park and one unit Tenaga Nasional substation.
The project’s duration is from March 8, 2018 until Dec 7, 2020.
On Wednesday, Daya Materials announced that it had triggered the prescribed criterion of PN17 when its shareholders’ equity fell to RM19.1 million on a consolidated basis in the fourth quarter ended Dec 31, 2017, which is less than RM40 million and represents less than 25% of its issued capital.
The company has 12 months to submit a regularisation plan to Bursa Securities and obtain the regulator’s approval to implement the plan. If it results in a significant change in its business direction or policy, it has to submit the plan to the Securities Commission.
Daya Materials posted a narrowed net loss of RM41.93 million for the financial year ended Dec 31, 2017 against RM207.29 million a year ago.