KUALA LUMPUR (May 27): Malpac Holdings Bhd's share price hit limit up in Bursa Malaysia's morning trade today after the oil palm planter reported on Tuesday (May 25) a third-quarter net profit of RM5.39 million from a net loss of RM3.28 million a year earlier.

At 10.34am today, Malpac's share price rose 29.5 sen or 32.6% to RM1.20 for a market capitalisation of RM90 million based on the company’s 75 million issued shares.

Malaysian markets resumed trading today after markets were closed yesterday (May 26) in conjunction with the Wesak Day holiday.

On Tuesday (May 25), Malpac said revenue for the third quarter ended March 31, 2021 (3QFY21), however, fell to RM638,000 from RM895,000.

For the nine months ended March 31, 2021 (9MFY21), Malpac said cumulative net profit stood at RM12.62 million versus a net loss of RM3.25 million a year earlier while revenue rose to RM4.31 million from RM2.76 million.

Over the last one year, Malpac's share price has risen to the current level today from 44 sen on July 28, 2020.

On April 28, 2021, the stock was traded at RM1.50.

According to Malpac's website, the group's current businesses comprise oil palm cultivation and palm oil mill operations besides investments in properties and marketable securities.

Malpac said the company started as a stockbroking firm in 1976 under the name of Chew & Teo.

Subsequently the firm's name was converted to Seremban Securities Sdn Bhd (SSSB) in 1987 and thereon officially recognised as a member company of The Kuala Lumpur Stock Exchange (KLSE) (now known as Bursa Malaysia), according to Malpac.

"Apart from trading in securities, SSSB also offered other related services such as underwriting, share registration and nominee services. The company was listed on the Main Board of The KLSE on Dec 12, 1990 with an authorised capital of RM50 million and a paid-up of RM25 million. In September 1995, the company increased its authorised capital to RM200 million and paid-up to RM62.5 million. In 1996, the paid-up capital was further increased to RM75 million. 

"At about the same time, SSSB's name was changed to Malpac Securities Sdn Bhd and with the increase in working capital, the company ventured into other businesses like moneylending, venture capital and share financing through its subsidiary companies, namely Malpac Capital Sdn Bhd and Malpac Venture Capital Sdn Bhd," Malpac said.

As a result of the changing landscape in the stockbroking industry, Malpac said its board decided to dispose of its stockbroking business to PM Securities Sdn Bhd. 

The deal was completed on Sept 15, 2001, according to Malpac.

"Subsequent to the sale of stockbroking licence, the group ventured into oil palm cultivation and investment holding activities," Malpac said.