JCY active, up 19% on RM81m compensation for relocation

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KUALA LUMPUR (March 13): JCY International Bhd shares surged as much as 19.05% in active trade this morning, after the firm agreed to compensation totalling 133.30 million yuan (RM81.05 million) for the relocation of its properties in China's Suzhou Wuzhong Economic Technology Development Area.

At 10.25am, JCY rose 14.29% or three sen to 24 sen, valuing the company at RM432.79 million. The counter was the third most-actively traded stock at this morning, with a turnover of 32.15 million shares.

"The proposed acceptance of relocation compensation is in line with the needs of Jiangsu Province for properties upgrade in Wuzhong Chemical Industrial Park," said JCY.

JCY expects pre-tax gain from the acceptance of compensation to be around 20.64 million yuan (RM12.55 million), after taking into account the expected direct and consequential costs.