Quick take: Mesiniaga surges 10% on MoF contract win

KUALA LUMPUR: Shares in Mesiniaga Bhd
jumped over 10% in early trade Friday after the company secured a RM261.26mil contract from the Ministry of Finance (MoF).

The information technology products and services company rose 10.66%, or 13 sen to RM1.35, its highest since late May. In the past one year, the counter has appreciated 16.19%.

Mesiniaga has secured a RM261.26mil contract from MoF to build new infrastructure for the Accountant General’s Department.

The company said the contract involves the plan, design, supply and deliver, install, configure, test and commission, implement, monitor and maintain the infrastructure hardware and software as well as to carry out the installation, migration testing and commissioning of the integrated financial and accounting management system of the government.

The contract is expected to complete by April 30,2025.

“The contract will have a positive effect on our earnings per share. However, it is not likely to have an effect on the dividend policy, gearing, share capital and the substantial shareholders’ shareholdings of the company for the financial year ending December 31,2019, ” Mesiniaga said.

Source: TheStar