This article first appeared in The Edge Financial Daily on March 2, 2018

KUALA LUMPUR: Shares in China-based gourmet convenient food manufacturer HB Global Ltd jumped 250% to close at a four and a half-year high yesterday, after the group returned to the black in its financial year ended Dec 31, 2017 (FY17).

At 5pm, the stock settled at 28 sen after gaining 20 sen. It was the most actively traded stock on the local exchange, with 268.48 million shares traded.

Its market capitalisation surged to RM131.04 million from RM37.44 million just a day before, when the counter last traded at 8 sen a share.

It opened the trading day yesterday a sen higher at 9 sen a share, and ran up to as high as 29 sen, before giving up a sen just before market closed.

On Wednesday, the Practice Note 17 (PN17) company posted an annual profit of about RM14 million for FY17, as opposed to a net loss of RM16.05 million a year ago, as revenue grew 12% to RM104.48 million from RM93.62 million.

Notably, the group posted a strong set of results in the fourth quarter of FY17, with a net profit of RM12.13 million, against a net loss of RM2.8 million in the previous corresponding quarter.

The group said the improved earnings was a result of focusing its resources on the profitable food processing segment after it ceased its duck farming segment in July 2016.

Quarterly revenue jumped 46% to RM44.02 million from RM30.11 million a year ago, on higher sales of frozen vegetable products.

HB Global fell into PN17 status in May 2013, after its external auditors made a disclaimer of opinion on its audited financial statements for 2012.