(Updated)

Kumpulan H&L High-Tech sells shares as price rockets to record high

Kumpulan H&L High-Tech sells shares as price rockets to record high
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KUALA LUMPUR (July 12): Kumpulan H&L High-Tech Bhd, whose share price hit limit up last Friday (July 9), continued to test another record high this morning, despite a stock exchange query on its usual market activity.

The counter soared as much as RM1.13 or 20.04% to RM6.77 after the opening bell. It has climbed 187% or RM4.41 since July 1.

As at noon break, the counter pared gains to close at RM5.40, down 24 sen or 4.26%. There were 12.2 million shares changing hands in the morning session. The trading volume is equivalent to 30% of the company's issued share capital.

While the company has yet to respond to the regulator's query on the sudden spike in share price, its management has taken advantage of the share price rally by disposing of some treasury shares over the past two weeks.

According to the filings to Bursa Malaysia, the company, which specialises in plastic injection moulding, has sold two million treasury shares at between RM2.50 and RM5.63 apiece from June 30 to July 9. The share sale has earned it RM8.11 million during the period.

The number of treasury shares stood at 1.11 million after the resale.

Kumpulan H&L's free float in the market is rather low. Its executive chairman and managing director Tan Lye Huat holds 49.65% of the company's total share capital of 40.61 million shares. This means that there are only about 19.3 million shares on the open market. 

Kumpulan H&L returned to the black in the second quarter ended April 30, 2021 with a net profit of RM2.66 million, from a net loss of RM656,000 a year ago, underpinned by its manufacturing and plantation segments.  

Its quarterly revenue also grew 72.6% to RM5.54 million, from RM3.21 million a year ago.

For the first half ended April 30, 2021, the group also swung back into profitability with a net profit of RM4.37 million, from a net loss of RM334,000 a year earlier.

Its revenue for the period increased by 34.66% to RM11.23 million from RM8.34 million a year earlier.

“Barring unforeseen circumstances, the board foresees a challenging year ahead for the remaining quarters for the current financial year. Nevertheless, the directors endeavour to maintain current performance,” the group said.

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Joyce Goh & Chong Jin Hun