(Updated)

Euro Holdings hits limit down again in the midst of finding out reasons behind share price drop

Euro Holdings hits limit down again in the midst of finding out reasons behind share price drop
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KUALA LUMPUR (June 16): Euro Holdings Bhd said it was not aware of the reasons behind a sharp drop in the share price of the office furniture manufacturer and property developer even as the stock hit limit down for the second consecutive day today.

Euro Holdings group deputy managing director Datuk Kenix Lim Sze Way told theedgemarkets.com today that the company is "in the midst of finding out” the reasons behind the share price drop. 

At Bursa Malaysia’s 12.30pm break today, Euro Holdings’ share price was down 51 sen or 29.65% at RM1.21, where it stayed until market close. It was the third top decliner of the day on the local bourse, with 3.89 million shares done.

Yesterday, Euro Holdings’ share price hit limit down after closing down 73 sen or 29.8% at RM1.72.

A stockbroker who spoke to theedgemarkets.com claimed that the correction in Euro Holdings’ share price "is justified as its earlier surge was not supported by its fundamentals”.

The stockbroker noted that the price of Euro Holdings shares, which are deemed speculative, had risen sharply in the last few months without any particular reason.

A glance at Euro Holdings' share price chart over the last one year showed that the stock’s price had fallen to current levels from RM5.62 on Jan 15, 2021.

On March 20, 2020, the stock was traded at seven sen.

Euro Holdings’ latest annual report shows that the company registered a net profit of RM1.45 million for the financial year ended Dec 31, 2020 (FY20) from a net loss of RM10.51 million a year earlier.

Revenue, however, fell to RM64.31 million from RM66.41 million, the company said.

For the first quarter ended March 31, 2021 (1QFY21), Euro Holdings said in a Bursa filing on May 25 that the company achieved a net profit of RM490,000, compared to a net loss of RM3.06 million a year earlier, while revenue rose to RM16.26 million from RM9.93 million.

Euro Holdings’ latest-reported net assets per share stood at 8.43 sen, according to the company.

Its latest share price at RM1.21 today gives it a market capitalisation of about RM970.3 million based on the company’s 801.9 million issued shares.

Chong Jin Hun