Melewar, Mycron soar on possible corp exercise

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KUALA LUMPUR (Sept 11): Melewar Industrial Group Bhd rose as much as 34% among top gainers while its sister company Mycron Steel Bhd jumped 21%.

At 2.56pm, steel pipe and tube manufacturer Melewar was traded at 51 sen with some 21 million shares changing hands. The eighth most-active stock, which was also the ninth-largest gainer, had earlier risen as much as 14 sen to 55 sen.

Mycron, which rose as much as 8.5 sen to 48.5 sen, changed hands at 45.5 sen at 3.14pm. Some three million shares were traded.

Both Melewar and Mycron share a common major shareholder in Khyra Legacy Bhd. Khyra owns 36.53% and 54.79% in Melewar and Mycron respectively.

On Melewar, dealers speculated that the share price rise might be due to a corporate exercise, which had yet to be announced.

“The company’s financials are not great, so there could be some announcement to be made that is yet to be out in the open,” he told theedgemalaysia.com.

Melewar's share price increase followed news that the company had returned to profitability in financial year ended June 30, 2014 (FY14) from losses a year earlier. The turnaround, however, came mainly on extraordinary gains from the sale of a subsidiary.

According to notes accompanying Melewar's financials, the disposal of Power Group had resulted in a gain on disposal of RM170.2 million

In 4QFY14, net profit came to RM108.7 million compared to a net loss of RM127.07 million a year earlier. Full-year profit came to RM18.97 million versus a net loss of RM214.96 a year earlier.