Fidelity Mgmt and Research is now a substantial shareholder in Ajinomoto

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KUALA LUMPUR (Dec 21): Fidelity Management and Research (FMR LLC), the second-largest mutual fund and financial services group in the world, has emerged as a substantial shareholder in Ajinomoto (Malaysia) Bhd with a 5.04% stake.

In a filing with Bursa Malaysia today, Ajinomoto said FMR LLC emerged as the company's shareholder after acquiring 3.04 million or 5% stake on Dec 7.

The monosodium glutamate (MSG) manufacturer said the financial services group then acquired an additional 15,400 shares or 0.04% stake in the company via three separate transactions between Dec 10 and Dec 11.

None of the filings stated the price of the transactions. Following the purchases, FMR LLC is now in control of 3.06 million or 5.04% stake in the company.

Ajinomoto was slapped with an unusual market activity query by Bursa Malaysia last Thursday (Dec 17) on the sudden rally in its share price. The stock was also flagged by theedgemarkets.com as a Stock with Momentum, three days earlier on Dec 14.

The counter saw its share price rise to an all-time high of RM9.30 last Wednesday (Dec 16) from RM7.31 on Dec 10. The stock ended the trading hours today at RM8.31, 39 sen or 4.48% lower than yesterday's closing, for a market value of RM505.24 million.

Over a month earlier, Ajinomoto was picked as The Insider Asia's Stock of The Day for the second time on November 11. It was first picked on Nov 4 last year when it was trading at RM5.57, and has gained some 49.19% since.

For Ajinomoto's second quarter ended Sept 30, 2015 (2QFY16), its net profit jumped 62.47% to RM12.38 million from RM7.62 million a year ago as revenue grew 6.22% to RM93.96 million from RM88.46 million in 2QFY15.

For the first half ended Sept 30, 2015 (1HFY16), net profit surged 43.1% year-on-year to RM22.7 million on the back of an 8.5% growth in revenue to RM189.5 million. The increase in net profit was mainly due to higher sales and better profit margins from export sales.

(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.)