Thursday 28 Mar 2024
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KUALA LUMPUR (May 25): A significant 19.8% jump in the share price of O&C Resources Bhd (formerly known as Takaso Resources Bhd) over the past three days has prompted Bursa Malaysia to issue an unusual market activity (UMA) query to the company.  

The counter ended the morning session today at 68.5 sen, up nine sen or 15.13%, after climbing to a one-year-high of 69.5 sen earlier. The current price values it at RM126.18 million.

A total of 20.18 million shares crossed hands between 61 sen and 69.5 sen. Yesterday, the stock closed at 59.5 sen with 5.7 million shares traded. This compares to its 65-day average trading volume of 745,585 shares.  

O&C Resources is a pioneer manufacturer and exporter of condoms and baby care accessories. It announced its intention to diversify into the property segment last year, and has obtained shareholders' nod for the diversification at its extraordinary general meeting on May 16.  

Today, the stock exchange has asked the company to state if there is any corporate development, rumour or reports in relation to its business affairs that may account for the share price movement.

It also advised investors to take note of the company's reply.

For the second quarter ended January (2QFY16), O&C Resources returned to profitability with a small profit of RM169,000, as compared to a loss of RM787,000 a year ago. Revenue climbed 25.2% to RM9.53 million, from RM7.61 million.  

For the cumulative six months period, it posted a net profit of RM596,000 as against a net loss of RM1.2 million in 1HFY15. Revenue rose 8.4% to RM20.07 million, from RM18.52 million.  

The company attributed better earnings to unrealised foreign exchange gains of RM460,000 and RM1.36 million.

"The improvement of gross profit in manufacturing of rubber products & baby products business and trading of electrical and mechanical products business, also contribut[ed to] better results in the current quarter and [the] cumulative quarter under review," it said.

The company said it has been facing challenges in manufacturing and marketing condoms and baby products, due to rising raw material prices and operational costs over the past few years.  

To improve its financial performance, it accepted a construction contract recently and expects its future prospects to be better.

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