THE journey of TH Heavy Engineering Bhd (THHE), a company beset with a myriad of problems for many years, seems to be coming to a painful end. Its shares are set to be delisted from the stock exchange on Dec 9, as its latest appeal for more time to submit its regularisation plan was rejected by Bursa Malaysia.
That is, unless THHE is able to submit an appeal by Dec 8. Even if it does, THHE shares will be suspended from trading as long as the appeal is pending.
A delisting would be a painful experience for THHE shareholders, its biggest one being Urusharta Jamaah Sdn Bhd, holding 65% of the former’s shares.
Recall that Urusharta Jamaah got its shareholding in THHE after it took over the distressed assets of pilgrim fund Lembaga Tabung Haji (TH) at end-2018. The issue though is how come THHE has sunk to these depths, destroying so much value in the process.
TH Heavy EngineeringTH Heavy Engineering
One can say although that the signs were there.
For example, as far back as 2017, the company’s auditors, Deloitte, had expressed a ‘disclaimer opinion” on THHE’s financial statements.
Deloitte had also subsequently pointed out multiple uncertainties that cast doubt on the company’s sustainability and it also listed an inability to determine the recoverability of vast sums of money.
The company had been blacklisted by Petroliam Nasional Bhd (Petronas) for four years, although that had been subsequently lifted.
It had been under the Practice Note 17 status over the last few years and had been granted multiple extensions to its deadline to submit a regularisation plan to revive its financials, but all of that has come to naught.
With a current order book value at RM1.3 billion, translating into healthy earnings visibility up to 2026, the company is also tendering construction contracts for roadworks and highways in Sabah, Sarawak, Perlis, and Johor.
"Our focus now would be to find the opportunity to collaborate with potential joint venture partners to develop projects and share resources and expertise," he said.
"We have re-strategised our geographical positioning by taking a closer look at potential emerging markets especially in the home and neighbouring countries covering East and West Malaysia, Brunei, Indonesia, and India.
"We will continue our participation in the development of affordable housing schemes like PR1MA and PPAM projects, securing roadwork construction and maintenance projects as well as EPCC and construction of hospitals and schools both in Peninsular Malaysia and East Malaysia," Rosland said.
Nov 9 Bursa Announced SCIB failed to submit financial statements within the time frame given. What as shamed! Until now still no news!!!! Something bad would happen this share...... Share price could drop further!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
hijau belalang
774 posts
Posted by hijau belalang > 2021-12-03 13:18 | Report Abuse
some part may agree
some may not
that is the angle should be looked into