Chee Wah sees 14.21% stake cross off market

Chee Wah sees 14.21% stake cross off market
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KUALA LUMPUR (Dec 22): Stationery products manufacturer and distributor Chee Wah Corp Bhd saw 5.98 million shares or a 14.21% stake in the firm traded off market today for RM7.06 million.

According to Bloomberg data, the shares were moved in one block at RM1.18 per share, 15.11% lower than the stock's closing price of RM1.37 today.

However, it is not immediately known as to whom the parties involved in the transactions were.

The Penang-based stationery manufacturer is a partnership among three brothers, Khor Say Kai, Khor Say Khai, and Khor Say Beng.

Based on Bloomberg data, as at Dec 22, Chee Wah managing director and co-founder Say Beng was the largest shareholder, with a 17.35% stake, while ANB Equity Sdn Bhd and Say Khai owned 14.35% and 10.31% in the company respectively.

Chee Wah was picked as a Stock with Momentum on on Aug 12, when it was trading at about 51 sen per share, and again on Oct 20, when it hit 72 sen.

Its products are sold under the established brands 'CAMPAP' and 'FOREST'. For FY2015, exports accounted for 71.3% of sales, up from 62.5% in the previous year.

Due to strong sales demand in export markets and the strengthening US dollar, Chee Wah registered a strong performance in the financial year ended June 30, 2015 (FY15), when revenue grew 7.2% to RM95.3 million while net profit grew 21-fold to RM2.9 million.

Shares in Chee Wah closed 2 sen or 1.44% lower at RM1.37 today, for a market capitalisation of RM57.25 million. Year to date, the counter has risen 234.15% or 96 sen.

(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.)