South Malaysia Industries slapped with UMA as half of market value wiped off

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KUALA LUMPUR (Sept 5): South Malaysia Industries Bhd (SMI) has been slapped with an unusual market activity (UMA) query by Bursa Malaysia Securities Bhd on Monday (Sept 5) after a sharp fall in its share price.

The property development company was among the local bourse’s top losers after the counter fell 26 sen or 50.5% to its intraday low of 25.5 sen, giving it a market capitalisation of RM55.1 million.

A total of 34.02 million shares changed hands during the day.

Prior to the heavy sell-off, SMI shares had been on an upward trend over the past two months, from 24.5 sen on July 4 to a high of 51.5 sen on Sept 2.

In reply to the query, SMI said its board is unaware of any corporate developments relating to its business and affairs that have not been previously announced that may have contributed to the trading, including those in the stage of negotiation/discussion.

It is also unaware of any rumour or report concerning the business and affairs as well as any possible explanation that may have accounted for the trading activity.

“The group is in compliance with the Bursa Securities Listing Requirements, in particular Paragraph 9.03 of the Bursa Securities Listing Requirements on immediate disclosure obligation.”

For the second quarter ended June 30, 2022 (2QFY22), SMI posted a net loss of RM400,000 as compared to a net profit of RM1.4 million a year earlier. Revenue for the quarter was flat at RM12.63 million versus RM12.32 million.

In FY21, its net loss narrowed to RM1.72 million from RM3.86 million in FY20.

SMI said the comparatively weaker earnings were a result of a RM2.6 million dividend income being recognised in 2QFY21 from an investment in New Zealand, but it was offset by higher contributions from its property development division and car park operation in the current quarter under review.

The company is also involved in the manufacturing and trading of assorted wires.

Asian Pac Holdings Bhd, through BH Builders Sdn Bhd, is the largest shareholder of SMI with a 9.31% stake.

Source : The Edge Markets

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