KUALA LUMPUR (Nov 13): Little known canned food manufacturer Rex Industry Bhd share price jumped as much as 7.3%, or eight sen, to an intra-day high of RM1.18 shortly before the closing bell for the morning session.

The stock retreated to close at RM1.16 today with only 52,000 shares changing hands.

Rex is featured as "Stocks With Momentum” by theedgemarkets.com today.

The company, which specialises in the manufacturing of Halal canned foods,frozen foods and beverages, has seen a slew of changes on substantial shareholders. The shareholding changes seem to suggest the elder shareholders are passing the baton to the younger generation.

Early last month, Lee Sze Whye,37, who is based in Singapore surfaced as a substantial shareholder after receiving a gift of 3.4 million shares or 6.1% in the company from a relative.

Similarly, Yee Wai Cheng, 40, surfaced as a substantial shareholder in Rex, controlling 5.6 million shares or about 10% Rex. The share transaction is also a gift from a parent.

Prior to the two surfacings, Yee Chek Mun ceased to be a substantial shareholder after parting with 2.9 million shares or 5.2% as a gift to a daughter.  

In September this year, Lee Hee Thiam a 57 year old non-executive non-independent director of Rex ceased to be a substantial shareholder after he gave away almost 4.6 million shares or almost 8.2% to his son, 28 year old Lee Wei Hsien.

On the same day as the shares were transferred, Hee Thiam’s spouse acquired almost 1.3 million shares or 2.3% at 97 sen a share. This same block was given by Lee Sew Keng, a sister of Hee Thiam, to their brother Lee Siew Boy.  Of note, Hee Thiam was Rex’s managing director from Aug 1995 to Sept 2011.  

Currently, Lee Chai Seng holds a 15.69% stake, Wai Cheng owns 10.03% and Wei Hsien holds 8.18% in Rex.

The latest filing shows that the company’s managing director Ong Choon Wah bought 29,000 shares at RM1.10 on Nov 12.

In terms of earnings, the Penang-based manufacturer recorded a net profit of RM568,000, for its third quarter ended Sep 30, 2014(3QFY14), signifying a 88% jump in net profits against RM301,000 recorded in 3QFY13.

Its revenue however slipped by 3% to RM39.68 million in 3QFY14, as compared to RM40.88 million a year ago.