KUALA LUMPUR (July 13): Kapen Capital Partners Ltd has ceased to be a substantial shareholder in Seal Incorporated Bhd (Seal Inc), which is principally involved in property development, after disposing of some 5.66 million or a 2.62% stake in the company.

In a filing with Bursa Malaysia today, Seal Inc (fundamental: 1.2; valuation: 0.9), which saw its share price more than halved to 52.5 sen today from RM1.44 on July 31 last year, said Kapen Capital, sold the shares today.

The current share price gives Seal Inc, which is also the manager of Selayang Mall Shopping Complex, a market capitalisation of RM113.2 million.

Kapen Capital first emerged as a substantial shareholder in Seal Inc after buying a 9.29% stake in an off-market deal for 48.7 sen each on June 1, 2011.

After its disposal today, Kapen, which has been trimming its stake since Sept 2 last year, should still control some 5.8 million shares or a 2.69% stake in Seal Inc.

According to Bloomberg data, the company's executive director Koay Teng Choon was the single largest shareholder in the company with a stakeholding of 12.41% as at March 13, 2015.

For the third financial quarter ended March 31, 2015 (3QFY15), Seal Inc swung into the red with RM191,000 net loss against RM53.59 million net profit a year ago; revenue also weakened by 94.53% to RM8.63 million from RM157.89 million.

For the cumulative nine months, its net profit dived 98.42% to RM1.05 million from RM66.91 million in the previous cumulative period; revenue tumbled 92.55% to RM20.77 million versus RM278.89 million last year.

The company said the lower earnings was due to the absence of income from Bayan City, which was completed in the previous financial year ended June 30, 2014 and a slow down in its timber operations during the current quarter.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)