UEM Edgenta slumps 16pct after Q1 loss, RHB ends coverage
KUALA LUMPUR: UEM Edgenta Bhd tumbled nearly 16 per cent or 13.5 sen, to 72.5 sen at midday after the company reported a net loss in the first quarter of its financial year 2025.
At the last price, the company had a market capitalisation of about RM602.9 million.
The share opened at 77 sen, down nine sen from Tuesday's close of 86 sen, and hovered between 72 sen and 77.5 sen throughout the morning session.
A total of 7.43 million shares changed hands.
The share price has been volatile since the beginning of this year, before peaking at 93 sen on May 16.
Year-to-date, the stock has declined 10 per cent.
UEM Edgenta's biggest shareholder is Khazanah Nasional Bhd's UEM Group Bhd, which owns 69.14 per cent of the company.
This is followed by Urusharta Jamaah Sdn Bhd with a 5.75 per cent stake in the company.
RHB Investment Bank Bhd (RHB Research) noted today that it is ceasing coverage on UEM Edgenta due to a reallocation of internal resources.
The firm's last call was "Buy" with a target price of RM1.04.
It stated that UEM Edgenta's core net loss of RM17.7 million in the first quarter of the financial year 2025 (1QFY25) came in below expectations.
This was mainly attributed to a decline in the healthcare support division due to contract termination in Malaysia.
The company also recorded lower revenue contribution from the infrastructure services segment, following changes in the scope of work performed during the quarter.
"Seasonality factors and higher operational costs – primarily because of increased manpower expenses stemming from the minimum wage hike – also contributed to dragging UEM Edgenta into the red," RHB Research added.
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