PETALING JAYA (June 3): CN Asia Corporation Bhd shares slumped 8.5 sen or 26.15% to 24 sen at noon today as investors sold off their shares in the company once CN Asia fell to Practice Note 17 (PN 17) status.

At 12.01pm, a total of 41,200 shares were traded. The stock reached a high of 30 sen and a low of 20 sen.

It was among the top ten decliners at noon today.

When contacted, a remisier who requested for anonymity said as the volume of shares traded were thin, investors were probably itching to sell off the shares they held in the company.

“The market is pricing it (shares) down,” he told theedgemarkets.com.

“I think some folks who had shares were desperate to sell it off,” he added.

Last Wednesday, CN Asia (fundamental: 0, valuation: 0.9) announced that it had triggered criteria pursuant to PN17 due to its financial standing for the financial year ended Dec 31, 2014 and shareholders’ equity of the company on a consolidated basis is 50% or less of the issued and paid-up capital of CN ASIA in the company’s unaudited quarterly report for the first financial quarter ended March 31, 2015 (1QFY15).

The company has one year to submit a regularisation plan to Bursa Malaysia, failing which it risks de-listing and suspension of trading of shares.

In 1QFY15, the company reported saw its net loss widened 9.23% to RM1.42 million or 3.1 sen per share from RM1.31 million or 2.9 sen per share in the previous corresponding period due to a reduction in revenue and a 33% increase in administrative expenses.

Revenue in 1QFY15 dropped 4.31% to RM5.57 million compared to RM5.82 million in the first quarter of financial year 2014 (1QFY14).

CN Asia manufactures underground and aboveground storage tanks for the petroleum and general process industries; dish heads and provision of plate rolling services for the food and beverage, petrochemical, energy and heavy engineering industries worldwide and transportation equipment such as tankers.

It also provides engineering, procurement and construction (EPC) services.

(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.)