KUALA LUMPUR (Aug 20): The share price of Computer Forms (M) Bhd (CFM), which pocketed over RM90 million from land sales, hit limit up again today. It soared to a fresh record high of RM1.44 this morning, up 33 sen or 29.7%.
However, its trading volume was rather thin at 2.86 million shares in the morning trading session.
At noon break, CFM was the fourth top gainer and the second biggest winner in terms of percentage gain.
The stock also hit limit up yesterday after surging as much as 30 sen or 37.04% to RM1.11.
The counter has jumped 80% from its recent low of 80 sen in one week from last Friday (Aug 13).
The frenzy buying started after the company announced the ex-date of its 20 sen special dividend per share is on Sept 1. The dividend will be paid on Sept 10.
It is worth noting that CFM has an additional 164 million bonus shares listed the previous Monday (Aug 9).
Excluding the special dividend payment, the land sales provided the company with additional RM43 million fresh cash for working capital.
For the financial year ended March 31, 2021, the group posted a net profit of RM328,000, as compared to a net loss of RM1.9 million.
Nonetheless, the company warned of gloomy prospects ahead. CFM said it expects its performance in the next financial year to remain sluggish in view of the weaker demand and challenging economic environment caused by the Covid-19 pandemic.
To recap, CFM sold four parcels of land to its sister company FCW Holdings Bhd for RM91.1 million cash. Consequently, the company is expected to book a one-off divestment gain of RM60.92 million from the land sales.
CFM and FCW have a common shareholder Tan Sri Tan Hua Choon, who holds 64.97% stake in CFM and 30.61% at FCW, according to the latest filings to Bursa Malaysia.
Tan, who is commonly known as the Casio King, is expected to receive RM26.64 million cash from the special dividend.