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Hot stock: Sino Construction jumps 11.8% in heavy trade
SHARES of Sino Construction shot up on Wednesday morning after the firm said its subsidiary has received approval to start operations at its micro power plants in Korea.
The counter traded at 3.8 Singapore cents, up 11.8 per cent from its Tuesday close, at 11:45am as 58.8 million shares changed hands, making it the most heavily traded stock on the Singapore Exchange.
The start of the micro power plants will have a positive impact on the group's earnings for the current financial year, Sino Construction said - a rare piece of good news for the firm which has hit multiple roadblocks in its restructuring bid to move into the energy sector.
Magnum Modular Power Generation (MMPG) - a joint venture with Primeforth Renewable Energy Limited -has completed construction of its first micro power plant on April 29, and is building a second plant that is expected to be ready by end July.
The modular systems incorporate MMPG's proprietary advances in biofuel technologies and micro power plant development that will enable immediate rollout in the supply of power generation, said Sino Construction.
Said its interim executive director Drew Madacsi: "The licence allows MMPG to operate the first two micro power plants perpetually, giving us renewed confidence in the statutory processes in South Korea. The successful rollout of the micro power plant programme is important to the company's long-term cashflow strategy."
Despite the rise, the counter is still 85 per cent lower than what it was at the start of the year.