KUALA LUMPUR (Sept 7): Latitude Tree Holdings Bhd, whose share price hit limit-up today after jumping 30%, has received an unusual market activity (UMA) query from Bursa Malaysia over the sharp jump in its share price.

Latitude Tree shares surged 63 sen to close at RM2.73 apiece today, which gave the company a market capitalisation of RM265.38 million, after some 582,800 shares were exchanged.

In a bourse filing, the furniture maker said it has to disclose whether there have been any developments relating to its business and affairs or rumours or any other possible explanation that could account for the UMA. It is also to state whether it is in compliance with Bursa Securities' listing requirements, in particular Bursa's rules on immediate disclosure obligations.

Latitude Tree returned to profit in its fourth quarter ended June 30, 2020, with a net profit of RM326,000 versus a net loss of RM8.58 million a year ago, despite a 12.78% drop in revenue to RM138.56 million from RM158.86 million. The improved year-on-year earnings came as it recorded lower cost of sales and expenses, as well as lower taxation.

For the full year ended June 30, however, the company's net profit fell 13.66% to RM16.71 million from RM19.35 million, as revenue retreated 6.14% to RM684.74 million from RM729.57 million on lower sales as demand was impacted by the Covid-19 outbreak, though the decline was offset by a stronger US dollar against the ringgit.

Besides the lower revenue, the yearly income was affected by higher production costs amid lower production across all divisions, higher labour costs in Vietnam and Malaysia plants due to a rise in minimum wages, and an impairment loss on inventories of RM2.1 million.