KUALA LUMPUR (Feb 13): Kumpulan Powernet Bhd shares continued their uptrend today, surpassing the record high it reached yesterday, making it Bursa Malaysia's fourth biggest gainer of the day at press time.

The stock climbed as much as 15.08% or 38 sen to RM2.90 earlier, before paring some gains. At 4.10pm, the stock was trading at RM2.79, still up 27 sen or 10.71%, giving it a market capitalisation of RM218.55 million. The counter saw some 3.77 shares traded.

The counter has gained over 600% in the past 12 months. With today’s jump, Kumpulan Powernet has near doubled its market value since the start of the year. This week alone, the stock has climbed near 50%.

The latest corporate development at Kumpulan Powernet happened on Tuesday, when it announced it has secured a hydropower project worth US$15.88 million (RM65.74 million) in Laos.

But the renewed interest, said an analyst with a local bank, could have been driven by recent discussions between the management and potential investors, analysts and shareholders on the company’s plans ahead — although it is understood that everything is at early stages at this juncture.  

Kumpulan Powernet, who welcomed Serba Dinamik Holdings Bhd’s founder Datuk Abdul Karim Abdullah as its new major shareholder late last year, has been reported to be eyeing a bigger role in the energy, utility, logistics, and infrastructure sectors. It has also set an ambitious order book target of RM1 billion by June 30 this year. At the time, the group was bidding for some RM2.5 billion worth of jobs.

When contacted, Abdul Karim, who is now Kumpulan Powernet's non-executive chairman, told theedgemarkets.com that the group will make the necessary announcements on its detailed plans for growth, pending approval from the necessary parties and authorities.

He also said Kumpulan Powernet is a company he aims to nurture as part of the vendor partnership programme under the Ministry of Entrepreneur Development and Cooperation, citing how he and Serba Dinamik are part of a similar vendor programme undertaken by Petronas.

“With the same spirit, we have a pledge and commitment with the Malaysian government to work as an anchor vendor to bring potential companies to new heights,” added Abdul Karim.

As at Oct 16, 2019, Abdul Karim controls 37.77% in Kumpulan Powernet. Other substantial shareholders are Grand Deal Vision Sdn Bhd, which is the private vehicle for Mustakim Mat Nun, Kumpulan Powernet's managing director.