KUALA LUMPUR (Aug 28): MMS Ventures Bhd, which reported a 70% year-on-year fall in its second quarter net profit today, is planning to undertake a bonus issue on the basis of one bonus share for every four existing shares held on an entitlement date to be fixed.

The proposed exercise will involve up to 40.75 million new shares and will be capitalised up to RM4.08 million from the company's share premium account, based on a par value of 10 sen per bonus share, according to MMS Venture's stock exchange filing today.

The company also plans to establish an employees' share option scheme involving up to 10% of the company's total issued shares, on completion of the proposed bonus issue.

It expects both proposals to be completed and implemented by the fourth quarter of this year.

Separately, the group announced its net profit fell to RM2.77 million in the second quarter ended June 30, 2018 (2QFY18), from RM9.14 million a year ago, on lower orders received from smart devices customers; revenue slumped 59% y-o-y to RM12.24 million from RM29.66 million. 

The group declared a first interim dividend of 1 sen per share, payable on Oct 18.

For the first six months of FY18, MMS’ net profit declined 49% y-o-y to RM6.76 million from RM13.19 million, as revenue retreated 37% y-o-y to RM28.16 million from RM44.41 million.

MMS shares closed one sen or 0.64% higher at RM1.58 today, for a market capitalisation of RM254.98 million.