Scanwolf says no knowledge of reasons behind share price, volume rise

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KUALA LUMPUR (Jan 23): Scanwolf Corp Bhd said it had no knowledge of reasons behind the recent increase in its share price and volume.

In a reply to Bursa Malaysia's unusual market activity (UMA) query, the home and kitchen fittings manufacturer and property developer said it was unaware of any corporate issues, which might have led to its share-trade dynamics.

Scanwolf (fundamental: 0.55; valuation: 0.6) was the third-largest decliner across the local exchange at 12.30pm today. It settled at 90.5 sen, down 9.5 sen or 9.5% with 308,100 units changing hands.

At 90.5 sen, Scanwolf has a market capitalisation of RM75 million. The stock had gained 53% this year, surpassing the FBM KLCI's 2% advance.

Yesterday, the counter gained 12.5 sen or 14.29% to RM1, prompting Bursa Malaysia to ask Scanwolf whether there was any corporate development that could have led to the sharp rise in its share price and volume.

Scanwolf's share price had risen sharply to current levels since early this month. Over the last six months, the stock changed hands at its intraday low of 47 sen on August 4, 2014.

While Scanwolf has indicated it was unaware of any corporate development, which might have led to its share-trade dynamics, one notable exchange filing on January 5 this year (2015) might have caught investors' interest.

Scanwolf announced that its wholly-owned subsidiary Scanwolf Properties Sdn Bhd (SPSB), being the land owner of the "Kampar Putra II” mixed-property project in Perak, was now entitled to a 60% entitlement of the project.

This compared to the 20% agreed previously in July 2012. SPSB is undertaking the project under a joint venture with  Scanwolf Development Sdn Bhd, a 51% owned subsidiary of SPSB.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)