PETALING JAYA: Sam Engineering & Equipment (M) Bhd has proposed a bonus issue of up to 406.05 million new ordinary shares on the basis of three bonus shares for every one existing share held on an entitlement date to be determined and announced later.

       The company regarded the proposed bonus issue as the most appropriate avenue of rewarding the shareholders, it said in its filing with Bursa Malaysia.

       Subject to all relevant approvals being obtained, the proposed bonus issue is expected to be completed by the first quarter of 2022.

       The company said in the filing with the stock exchange that the proposed bonus issue was not expected to have any material effect on the group’s earnings for the financial year ending March 31, 2022.

       However, the earnings per share (EPS) of the company would be proportionately diluted as a result of the increase in the number of SAM Engineering shares arising from the exercise.

       SAM Engineering’s net profit rose to RM16.51mil for the second quarter ended Sept 30, 2021, from RM15.48mil for the corresponding period in 2020 on higher revenue.

       During the quarter under review, its revenue grew to RM234.83mil from RM220.9mil previously, and its EPS rose to 12.20 sen from 11.46 sen.

       For the cumulative period, SAM Engineering posted a net profit of RM28.49mil on revenue of RM437.6mil.

       This compared with a net profit of RM22.69mil on revenue of RM391.88mil for the six months to September 2020.

       During the nine-month under review, the group’s earnings per share rose to 21.05 sen from 16.79 previously.

       Its shares closed unchanged at RM23.70 yesterday.