KUALA LUMPUR (Sept 17): Shares of HeiTech Padu Bhd (KL:HTPADU) rose to their highest in nearly six months after the information technology company announced its latest contract win, worth RM133.73 million.

Over the weekend, The Edge reported that HeiTech Padu has emerged as the frontrunner to secure the RM1 billion National Integrated Immigration System (NIISE) contract, according to sources.

HeiTech Padu opened 15 sen higher on Tuesday and closed at limit up of 69 sen or 30% to RM2.99, its highest since March 11. At RM2.99, the company had a market capitalisation of RM332.93 million. It was the second top gainer across Bursa Malaysia.

No institutional analyst covers Heitech Padu.

The stock has risen 360% this year, bucking the 5.77% decline of the Bursa Malaysia Technology Index that tracks 49 stocks in the sector, thanks to a turnaround and contract wins.

The contract secured last Friday for digital systems for the Road Transport Department (JPJ) would be the second contract secured from the department this year.

In April, the company was awarded a RM190.01 million job to provide maintenance and technical support for JPJ's information and communications technology infrastructure and the MySIKAP system, which manages driver and vehicle information.

Rosetta Partners Sdn Bhd — the vehicle of the Sultan of Kelantan Sultan Muhammad V — is currently Heitech Padu’s largest shareholder with a 15.9% stake followed by MyEG Services Bhd (KL:MYEG) at 15.89% and founder-and-deputy chairman Datuk Seri Mohd Hilmey Mohd Taib at 14.16%.

For the second quarter ended June 30, 2024 (2QFY2024), HeiTech Padu recorded a net profit of RM449,000, marking a turnaround from a net loss of RM4.53 million in the same period last year.

Revenue grew by 13.07% to RM63.27 million, compared to RM55.96 million in 2QFY2023, driven by higher earnings across its technology, investment, and niche market groups.

As of June 30, 2024, the company held cash and bank balances amounting to RM39.76 million, with short-term borrowings of RM136.4 million and long-term liabilities of RM13.29 million.