This article first appeared in Capital, The Edge Malaysia Weekly on August 29, 2022 - September 4, 2022
Notable filings
For the week of Aug 15 to 19, notable shareholding changes at Bursa Malaysia-listed companies included that at Ajiya Bhd. Lee Koing @ Lee Kim Sin ceased to be a substantial shareholder of the metal roofing and safety glass maker after selling 8.8 million shares, or about 3% equity interest, between Aug 17 and 19, which trimmed his stake to slightly below the 5% threshold for substantial shareholding.
Lee was Ajiya’s third-largest shareholder with 22.79 million shares, or a 7.81% stake, as at Feb 28 this year, according to its 2021 annual report. At that time, the company’s largest shareholder was its founder and former managing director Datuk Chan Wah Kiang.
In April this year, however, Datuk Seri Chiau Beng Teik — founder of building material specialist Chin Hin Group Bhd — became Ajiya’s largest shareholder after acquiring a 32% stake from Chan. In May, Beng Teik’s son, Chiau Haw Choon, was named Ajiya’s managing director.
Over at LFE Corp Bhd, Resolute Accomplishment Sdn Bhd, controlled by Audrey Chua Mei Ling, ceased to be the engineering firm’s substantial shareholder after it sold 34 million shares, or a 4.24% stake, on Aug 17. Resolute still has about 3.9% equity interest following the sale.
LFE Corp returned to the black with a net profit of RM340,000 for the first quarter ended March 31, 2022, from a net loss of RM543,000 in the previous corresponding period, with construction progress running near full capacity.
On Aug 15, SHH Resources Holdings Bhd non-independent non-executive director Datuk Tan Seng Hu sold his remaining three million shares, or a 3% block, for RM1.8 million or 60 sen apiece via a direct business transaction.
At the same time, SX Capital Sdn Bhd increased its holding in the furniture maker to 8.35% after the purchase of four million shares, or a 4% stake.
For the first nine months ended March 31, 2022, SHH’s net profit tumbled 69.8% to RM1.6 million, from RM5.3 million in the same period the year before, owing to the temporary suspension of operations as a result of pandemic lockdowns, as well as a shortage of containers to ship its completed orders to customers.
Notable movements
In just three months, KNM Group Bhd’s share price had retreated about 40% from its recent high of 20 sen on May 20, if measured against its Aug 23 close of 12 sen, which gives the company a market capitalisation of RM441.2 million.
Founder Lee Swee Eng is no longer a substantial shareholder following the divestment of his entire direct stake of 1.09%, or 40 million shares, in the industrial process equipment maker via direct business transactions on Aug 12, according to an Aug 15 filing. An earlier filing dated July 26, however, showed that Swee Eng was deemed interested in a 5.92% indirect stake after transferring shares to his daughter Sara Lee Mei Ching on July 21.
Swee Eng relinquished his posts as group CEO and executive director in July 2020 after announcing his retirement. In September 2021, MAA Group emerged as a substantial shareholder of KNM with a 10% stake, seeking a bigger role in the latter’s turnaround plan.
In the January-March 2022 period, KNM narrowed its net loss to RM88.74 million from RM577.52 million in the October-December 2021 period.
On Aug 19, KNM announced the postponement of its extraordinary general meeting that had been scheduled for Aug 22 to seek shareholders’ approval for the planned €220.8 million (RM997.16 million) sale of its entire stake in Borsig GmbH, a German-based process equipment manufacturer.
Meanwhile, closing at 61.5 sen on Aug 23, shares of Microlink Solutions Bhd have recovered 8.8% in less than a month when measured against its recent low of 56.5 sen on July 27. That’s just 5% shy of the stock’s recent high of 65 sen on April 15.
Its non-independent non-executive director Datuk Seri Mohd Khairi Mat Jahya ceased to be its substantial shareholder on Aug 18 following the disposal of 46.29 million shares, or a 4.33% stake, for RM25.92 million or 56 sen per share.
A provider of financial services, enterprise solutions, trading services and solution delivery, Microlink reported an 18.1% decline in net profit to RM26.02 million for the financial year ended March 31, 2022, from RM31.76 million the year before, mainly due to higher taxation.
The group is currently seeking to transfer its listing to the Main Market from the ACE Market.
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