Metronic Global Berhad (Metronic) has got itself out of the Anhui Water Project and will be duly compensated.
However, the termination of this project has some adverse effect on its earnings per share and net assets per share for the current financial year ending 31 December 2010.
Accordingly, earnings per share will fall by 0.26 sen from loss per share of 0.33 sen per share to loss per share of 0.59 sen while net assets per share will decrease accordingly by 0.26 sen from 11.67 sen to 11.41 sen for the current fiscal year.
On balance, Metronic will be compensated by the termination of the agreement, receiving RMB3,904,303 or in equivalent, RM 1,819,405. This will be useful in replenishing the company's coffers as much needed working capital.
So, how is the market going to respond or react to this development.?
Let us wait and see.
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