KUALA LUMPUR (May 25): O&C Resources Bhd (formerly known as Takaso Resources Bhd), whose share price surged nearly 20% over the past three days, said it was unaware of the reasons for the recent sharp rise in its share price.

At closing bell, the stock gained 10 sen or 15.97% to close at its one-year high of 69 sen, after 27.71 million shares changed hands. The current price values it at RM146.33 million.

Yesterday, the stock closed at 59.5 sen with 5.7 million shares traded. In comparison, it has a 65-day average trading volume of 1.16 million 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.

This morning, the stock exchange 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 Jan 31, 2016 (2QFY16), O&C Resources returned to the black with a small profit of RM169,000 compared to a loss of RM787,000 a year ago. Revenue rose 25.2% to RM9.53 million from RM7.61 million.

For the cumulative six-month period (1HFY16), it posted a net profit of RM596,000 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.