KUALA LUMPUR (Aug 9): Datuk Lau Eng Guang has been accumulating Comfort Glove Bhd's shares on the open market since last week, increasing his stake to 12.26%.
A stock exchange filing by Comfort Gloves today showed Lau bought a total of 798,200 of its shares between Aug 3 and yesterday (Aug 8). The shares were bought under his own name, which increased the shares he directly owned to 17.56 million or 3.14% of Comfort Gloves' total share base.
His deemed interest in Keen Setup Sdn Bhd brought his indirect stake in Comfort Gloves to 12.26%.
Lau's son Joo Yong is an executive director of Comfort Gloves, while his nephew Joo Pern has a non-executive role on the board. Comfort Cloves chairman Lim Boon Huat also has links to Lau, as the former is a trustee of Lau Eng Guang Dialysis Charitable Foundation.
Like many other rubber glove makers, Comfort Gloves had a great 2015 as it expanded its capacity and had the stronger US dollar to widen its profit margin. All in all, its shares rose by 42.31% in 2015 to end the year at 92.5 sen.
In contrast, Comfort Gloves was flat at 65.5 sen today, valuing the company at RM366.01 million.
The company began its financial year ending Jan 31, 2017 (FY17) with a net loss of RM9.44 million in the first quarter as a fire outbreak at its newly constructed warehouse forced Comfort Gloves to write down RM12.8 million worth of inventories and fixed assets. However, the company said it expects to recover the amount from insurance claims.