Seremban Engineering, Success Transformer down on profit taking

Seremban Engineering, Success Transformer down on profit taking
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KUALA LUMPUR (Oct 28): Seremban Engineering Bhd fell as much as 13% after the industrial process equipment manufacturer's shares hit limit up yesterday.

Yesterday, Seremban Engineering hits limit up after its shares rose 30 to close at 76 sen.

As such, Bursa Malaysia queried Seremban Engineering on its share price and volume rise. Seremban Engineering told exchange regulator Bursa it was not aware of any corporate development that might have led to its share-trade dynamics.

Today, Seremban Engineering shares fell as much as 9.5 sen to 66.5 sen at 10.04am. The bourse's fifth-largest decliner saw some five million shares transacted.

The Edge Financial Daily (Edge FD), quoting sources, reported today that industrial-lighting manufacturer Success Transformer might sell its entire 65% stake in loss-making Seremban Engineering.

Seremban Engineering posted a net loss of RM5.97 million in the first half ended June 30, 2015 compared to a net profit of RM2.17 million a year earlier.

Edge FD reported that the poor performance of Seremban Engineering had dampened the financial results of Success Transformer.

Success Transformer shares fell two sen or 1% at 10.09am to RM2.12 with 423,100 units done. Yesterday, the stock rose 13 sen or 6% to close at RM2.14.

(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.)