Edaran Bhd's counter was the second highest top gainer for the first half of this morning, with close to 31.3 million shares exchanging hands as at 2pm today, a day after announcing to the stock exchange that it has secured a sales and service tax management system from the Royal Malaysian Customs Department.
The stock was up 28 sen or 54% to 79.5 sen at 2pm, hitting a 52-week high.
In an exchange filing yesterday, Edaran announced its wholly owned subsidiary, Edaran IT Services Sdn Bhd, secured a contract to undertake maintenance of hardware, software, network, integration and application of Sistem Maklumat Kastam (SMK) and Malaysia Sales & Services Tax (MySST) (2023-2027) for the customs department at a value of RM89.88 million.
MySST system is a sales and service tax management system.
Edaran IT is a full fledged IT services and solutions provider, bringing to its customers end-to-end IT systems solutions that include the provisioning, installation, commissioning, integration and maintenance of IT systems and related services.
The proceeds for the project shall contribute towards the earnings of Edaran group for the financial year ending June 30, 2024 until June 30, 2027.
The four-year deal commenced on September 1, 2023.
Its largest shareholders are Valiant Chapter Sdn Bhd with a 23.8% stake, Kauthar Sdn Bhd (8.17%) and Unique Pyramid Sdn Bhd (7.93%). It has a market capitalisation of RM44.6 million.