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BETWEEN Jan 14 and 20, 196.9 million shares worth RM630.6 million were traded off market in blocks of at least 500,000 shares. This includes the acquisition of 2.2 million shares or a 1.55% stake in Gunung Capital Bhd (fundamental: 3.0; valuation: 0.6) by largest shareholder Datuk Syed Abu Hussin Hafiz Syed Abdul Fasal.
 
Filings show Syed Hussin acquired one million shares at 80 sen per share off market on Jan 15. He bought another 1.2 million shares at 80 sen apiece on Jan 16 and another 441,000 shares on Jan 19, also at 80 sen each, off market. That brought his total holdings to 18.72%, making him the largest shareholder with 26.52 million shares. The second largest shareholder is Low Bock Tek, via Erayear Equity Sdn Bhd, with 11.79%, according to Gunung Capital’s 2014 annual report.

Gunung Capital’s share price has been hammered down since Prime Minister Datuk Seri Najib Razak announced last Monday that the National Service programme will be suspended this year to save RM400 million from the government’s budget. Last December, Gunung Capital said it had bagged a contract worth RM165 million from the Ministry of Defence to provide bus transport services for the National Service programme for three years starting Dec 26, 2014. Expectations are that the contract terms and value would be revised.

For the nine months ended Sept 30, 2014, Gunung Capital made RM11.5 million in net profits. The company, which provides chartering of land-based passenger transport assets, had acquired a 60% stake in Perak Hydro Renewable Energy Corp Sdn Bhd (PHREC) in October 2013. PHREC had entered into 14 joint ventures to build-own-operate small hydro plants in Perak.

Over at Biosis Group Bhd (fundamental: 0.0; valuation: 0.3), 5.6 million shares, representing 5.35% of its share base, were traded off market on Jan 16  at 25 sen per share. According to filings, the generic drugs manufacturer last saw a sizeable off-market trade on Oct 1, 2014, when Erwan Azizi, 32, emerged as a substantial shareholder with a 19.05% stake or 20 million shares after buying 10.2 million shares in an off-market transaction at undisclosed prices.

Erwan became the group’s non-independent, non-executive director on Nov 14, 2014. He is also executive director of Optimus Capital Sdn Bhd and Newlake Development Sdn Bhd, and managing director of Tronoh Malay Oil Palm Sdn Bhd. Biosis is undergoing a regularisation plan after it defaulted on several financial instruments from January 2013. It made RM724,000 in net profit for the six months ended Sept 30, 2014, compared with a RM8.85 million net loss in the previous corresponding period.

Meanwhile, some 3.13 million shares or 4.28% of LBI Capital Bhd (fundamental: 1.7; valuation: 3.0) were transacted off market at RM1.15 per share on Jan 15.

These may well be transactions involving companies owned by LBI’s largest shareholder Datuk Ng Chin Heng. A Jan 21 filing showed that Ng Tiong Seng Corp Sdn Bhd disposed of the same number of shares at the same price to Ng C H Holdings Sdn Bhd in a married deal on Jan 15. Ng’s deemed interest is 58.04% or 42.48 million shares. LBI closed at RM1.30 on Jan 21.

Over at jewellery maker and retailer Tomei Consolidated Bhd (fundamental: 0.15; valuation: 1.2), major shareholder Tan Sri Ng Teck Fong disposed of 14 million shares or a 10.1% stake off market at 50 sen per share, or a total consideration of RM6.99 million, to Tropical Bliss Sdn Bhd on Jan 15. That cut Ng’s stake to 60.48%, according to a Jan 16 filing. Tropical Bliss, meanwhile, emerged as a new substantial shareholder with 19.55 million shares or a 14.11% stake.

Tomei acquired 39% of Gemas Precious Metals Industries Sdn Bhd from Schofer Germany – The Chain Company GmbH & Co.KG for RM2.96 million cash on Dec 2, 2014.

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.

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This article first appeared in The Edge Malaysia Weekly, on January 26 - February 1, 2015.

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