Permaju Can Grow Exponentially; RM1.2 Billion Contract Win Just The Start Of The Game

Permaju Can Grow Exponentially; RM1.2 Billion Contract Win Just The Start Of The Game | Interesting things are developing in Permaju Industries Bhd and it is a stock to watch out for!

The company, which is raising cash via a rights issue for expansion has won a RM1.2 billion construction contract from a reputable developer.

The contract is to build more than 7,000 units of apartments over six to seven years in the Seri Kembangan/Serdang area.

This was reported by New Straits Times (NST), which also said the whole project will generate about RM2.4 billion in gross development value.  

There was no mention of how many towers might there be in the development but the tallest structure is over 50 floors.

Permaju will undertake the contract on a design and build structure.

Permaju is involved in the trading of motor vehicles, timber plantation, construction, and property development and has been looking for new business to diversify its earnings.

 On April 7, Permaju said it is looking into bottling and distributing Penaclo, a Hong Kong firm’s sanitiser product, for the Southeast Asian market amid the Covid-19 pandemic. 

On April 28, Permaju inked a memorandum of understanding with a local firm to sell the company's air purification products to its customers in the automotive sector, citing exponential demand growth for the product.

Last month it told Bursa Malaysia that it has incorporated a company named Permaju Glove Sdn Bhd (PGSB) to venture into the glove manufacturing business.

The intended principal activity of PGSB is to manufacture, distribute, buy, sell and generally deal in rubber goods for industrial and commercial purposes and other related goods, wares and merchandise of every nature and description, it said.

So if you have the money and keen interest to invest, keep a watch on Permaju.

It is currently trading in the 30 sen range and volume seems to be building up in recent weeks indicating that something is happening.

Well, from my observation, I think Permaju is undervalued and has the potential to rise with a fair value of 70-80 sen a share under the current market conditions.