This article first appeared in The Edge Malaysia Weekly, on December 7 - 13, 2015.

AT the end of last month, Hong Kong national Kwan Siu Cheung sold his 16.03% stake, or 20 million shares, in Yen Global Bhd at 35.5 sen a piece, or RM7.1 million.

It is noteworthy that Kwan had surfaced in Yen Global in late January 2009, when he acquired the block of shares at 50 sen each, or a total of RM10 million. Since his entry, Yen Global has paid only 1.5 sen in dividend, and went ex in January 2010, which would indicate that Kwan sold off his stake at a loss.

Apart from Kwan, filings with Bursa Malaysia show that Extreme Lifestyle (M) Sdn Bhd — the vehicle of Goh Kok Beng and his brother Goh Kok Heng — sold 10 million shares or 8.02% in Yen Global at 30.5 sen or RM3.05 million, and reduced its shareholding to 30 million shares or 24.06%.

Kok Beng is executive chairman and Kok Heng is managing director of Yen Global.

Whether the shares disposed of by Kwan and the Goh brothers, collectively amounting to 24% in Yen Global, were acquired by an individual or a few parties is still not known.

The share price of Yen Global, which principally deals in apparel, has gained more than 140% over the past month or so and ended trading last Thursday at 43.5 sen.

“There are just so many stories circulating. It doesn’t help that the company’s stock has also run,” says a market watcher. One is that Chin Boon Long, who is well known in the investing fraternity, will surface in the company. This came about after Lim Boon Hong, surfaced as an executive director in Yen Global in late November. The two of them were together in Ingenuity Consolidated Bhd (Ingenco), but Lim resigned from Ingenco’s board in mid-November.

Ingenco’s stock has been erratic, rising from a low of 10 sen to more than 45 sen in a matter of days amid heavy trading volume.

Chin, 47, was in the limelight in 2012 when he turned down an offer of 55 sen a share, or a total of RM90 million, for his Ingenco shares, and those of other directors, amounting to a 39% stake, from Ninetology Marketing Sdn Bhd. At that time Ingenco’s net asset value per share was below 10 sen, and it was trading at about that price.

Surprisingly, Chin, who held 29% of Ingenco, and the others rejected the offer despite the huge premium. He resigned as Ingenco’s managing director in mid-February, citing “health reasons and other personal commitments”.

Other companies linked to him include 1 Utopia Bhd, Lay Hong Bhd and O & C Resources Bhd (formerly known as Takaso Resources Bhd), which also saw big fluctuations in their share prices.

Meanwhile, according to a merchant banker, a Taiwanese party is looking at buying Yen Global, but this remains unsubstantiated.

But what is it in Yen Global that has drawn interest?

The company has its mainstay in the manufacturing, wholesaling and retailing of apparel, and also does its own designing and distribution. Some of the brands under Yen Global include Edwin, GA Blue and Mustang.

The company’s financials have not been great. For its financial year ended July 2015, it suffered a net loss of RM9.79 million on the back of RM34.84 million in revenue.

Since FY2010, Yen Global has only made a profit in FY2013, posting a meagre net profit of RM1.13 million, from RM34.84 million in revenue.

As at end-July this year, the company had cash and bank balances of RM2.19 million, short-term debt commitments of RM9.82 million, and no long-term borrowings.

Its net asset value per share as at end-July was 27 sen. According to its annual report, it owns a few pieces of land in Penang, among them, a two-acre parcel with a factory building in Bayan Lepas, with a net book value of RM10 million. It also has a 13-year-old factory building on 9,840 sq ft, also in Bayan Lepas, with a net book value of almost RM2.5 million, and a 8,160 sq ft parcel and a commercial building in Petaling Jaya, Selangor, with a net book value of RM2.68 million. It is noteworthy that some of its land parcels have not been assigned any net book value.

So what is it in Yen Global that has elicited so much interest and sparked the sharp rise in its share price? Could it be a prelude to Chin’s entry, or is some other interested party coming into the ailing apparel maker?

Could one get clues on the fate of Yen Global by looking at the companies Chin has bought into in the past?

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.