Hong Seng bags RM112m contract to supply PCR test kits to MoH; shares jump to new record high

TheEdge Thu, Jul 22, 2021 06:36pm - 1 week ago View Original

KUALA LUMPUR (July 22): Hong Seng Consolidated Bhd, whose share price hit another record high today, said its 51%-indirect unit has secured a RM112.32 million contract from the Ministry of Health (MoF) to supply polymerase chain reaction (PCR) Covid-19 test kits to the ministry.

The one-year contract will be in effect from July 26, 2021 to July 25, 2022, Hong Seng said in a bourse filing. It did not disclose the volume contracted between the two parties.

The PCR test kits will be supplied to the Institute for Medical Research and Public Health Laboratory Kota Kinabalu. The letter of award from MoH was received on July 22 by Pantasniaga Sdn Bhd, a 51%-owned unit of HS Bio Sdn Bhd, which is wholly owned by Hong Seng.

In a statement, Hong Seng executive director Christopher Chan said the latest contract win is expected to contribute positively to the company's overall future earnings.

"Previously, Pantasniaga has already performed and fulfilled a few supply contracts for the MoH and other Malaysian government agencies to supply PCR test kits in Peninsular Malaysia and Sabah to fight the virus outbreak," he said, adding the latest contract is testament to the company's strong commitment to enable safe and effective Covid-19 testing in the country.

Hong Seng shares, which rose two sen to their highest of RM1.71 yesterday, climbed 21 sen or 13.82% more to close at their new high of RM1.73 today, valuing the group at RM4.13 billion. The counter has jumped 102.34% or 87.5 sen since the start of July.

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