At 10.52 a.m., the Lembaga Tabung Haji-controlled's entity was traded at 14 sen, up 2.5 sen or 21.74%, after surged to a high of 15 sen earlier.
Nearly 48 million shares were exchanged, making it the most actively-traded counter across the bourse. At 14 sen, it had a market capitalisation of RM162.56 million.
Shares in the oil and gas facilities fabrication company, 29.81%-owned by pilgrim fund Lembaga Tabung Haji (LTH), took a beating to plunge to seven sen from 10 sen in early July, after another two winding-up petitions were filed against the company by MIB Italiana SPA and Orwell Offshore Ltd to claim for US$1.27 million and S$7.61 million respectively.
It piqued investors' interest since July 15, causing its shares to be priced doubled to 14 sen, from seven sen then.
Quoting industry sources, The Edge Weekly today reported that TH Heavy is understood to be close to securing a contract in excess of RM700 million to build at least two boats for Malaysian Maritime Enforcement Agency.
According to the report, THHE has been negotiating the contract for some time and Lembaga Tabung Haji's chairman Datuk Seri Abdul Azeez Abdul Rahim were understoood to have been involved in the talks.
The report added that the negotiations have been more or less concluded, and the contract could be a life-line for THHE.
"The only worry would be the two winidng-up petitions. Once they are settled, THHE should be able to secure the job," a source said.
Earlier in June 3, Soft Triangle Services Sdn Bhd had filed a winding-up petition against THHE to claim RM2.71 million, but the case was resolved between both parties, and Soft Triangle withdrew the petition.
Then in early July, THHE was slapped with two winding-up petitions from its creditors for a collective sum of US$8.88 million (RM35.6 million) in relation to the supply of equipment and work done at the floating production, storage and offloading (FPSO) Layang project.
The first petition was by MIB Orwell Offshore Ltd and was presented on June 30 to the Kuala Lumpur (KL) High Court. A copy of the petition was served to THHE on July 4.
The second petition is by MIB Italiana SPA and was presented to the KL High Court on July 1; a copy of it was also served to TH Heavy on July 4.
For the 1QFY16, it suffered a net loss of RM33.44 million, from RM14.52 million of sales.
The company suffered from dwindling revenue and lack of new projects. As at March 31, 2016, its outstanding main fabrication order book stood at RM132.6 million; while its outstanding minor fabrication, crane manufacturing and repairs and supply of equipment order book stood at RM9.4 million.
THHEAVY (7206) - Hot Stock: TH Heavy shares at one month high on potential RM700m contract