(Updated)

Rapid Synergy market cap tops RM1b for first time as share price rises past RM9 to record high

Rapid Synergy market cap tops RM1b for first time as share price rises past RM9 to record high
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KUALA LUMPUR (Oct 16): Rapid Synergy Bhd’s market capitalisation topped RM1 billion for the first time since the company’s listing as the precision tool manufacturer and property investor's share price rose past RM9 to an all-time high on Bursa Malaysia on Friday (Oct 15).

Rapid Synergy’s share price finished up 33 sen or 3.68% at a record-high closing price of RM9.30, with 143,800 units transacted. 

The stock pared gains after rising to an all-time intraday high of RM9.33, with a market capitalisation of RM1.003 billion based on the company’s 107.49 million issued shares. Rapid Synergy shares were traded at between RM9.13 and RM9.33 on Friday.

The company’s latest-reported net assets per share stood at RM1.45.

Its share price had risen to current levels from its closing price of RM6.59 on Jan 4, 2021.

Reasons behind the share price rise on Friday could not be immediately ascertained as at the time of writing on Saturday.

Rapid Synergy's substantial shareholder and non-executive director Datuk Dr Yu Kuan Chon had not responded to theedgemarkets.com’s text message asking him about the reasons behind the share price rise. 

According to Rapid Synergy’s latest annual report, Dr Yu, who owned a direct stake of 20.23% and an indirect stake of 5.5% in Rapid Synergy as at May 12, 2021, is also the chairman of YNH Property Bhd.

Rapid Synergy indicates on its website that the company undertakes precision tool-making operations via its wholly-owned subsidiary Rapid Precision Technologies Sdn Bhd.

"Rapid Precision Technologies is a Malaysia-based high-precision tooling specialist with over 30 years of experience in the industry. Our beginnings date back to 1981 when we were one of the pioneers in the precision tool-making industry in Malaysia. 

"We achieved rapid growth for the past 20 years and today, we are one of Southeast Asia's forerunners in design to manufacture of high-precision tooling products. We will continue to focus on our specialities and expertise for the future,” said Rapid Synergy, the investment properties of which comprise properties in Perak, Kuala Lumpur and Penang.

The company’s annual report shows that its real estate assets here in Kuala Lumpur include vacant land in Sri Hartamas where the firm intends to develop properties to be rented out. 

In Penang, the company’s investment properties include factory buildings within the Southwest Penang Island District, according to the annual report.

Within Perak, Rapid Synergy’s real estate assets include a hypermarket in Manjung and supermarket in Sitiawan, the company said.

According to its latest quarterly financial report, its net profit rose to RM400,000 for the second quarter ended June 30, 2021 (2QFY21) from RM192,000 a year earlier, while revenue climbed to RM7.69 million from RM5.98 million.

For the first half ended June 30, 2021 (1HFY21), the group’s cumulative net profit fell to RM69,000 from RM552,000 a year earlier, although revenue rose to RM15.2 million from RM11.16 million, Rapid Synergy said.

The company’s Bursa filings show that since its listing in 1997, it had not undertaken any share buy-back transactions.

The last time Rapid Synergy paid a dividend was in 2008, during which the company declared a first and final tax-exempt dividend of two sen a share for FY07 (the financial year ended Dec 31 2007), according to its filings.

Chong Jin Hun