KUALA LUMPUR (Nov 5): Solid Automotive Bhd’s Executive Director (ED) Ker Meng Oi has ceased to be a substantial shareholder of the company, following the disposal of one million shares representing about 0.7% of the company's outstanding share base of 150 million.

The company’s filing with Bursa Malaysia today showed Ker had disposed the shares at RM1.20 per piece, after which he still held a 4.35% stake in the automotive after-market distributor.

According to Solid Automotive’s latest annual report, Ker held a 5.02% stake as at Aug 26. The Johor-based company was founded by brothers Ker Min Choo, Ker Mong Keng and Ker Boon Kee.

Meng Oi, the ED who ceased to be a substantial shareholder today, along with Min Choo and Mong Keng, collectively holds a direct 56.47% stake and 0.05% indirect stake in the company as at Aug 26.

Solid Automotive was recently highlighted as one of the ‘Stocks with Momentum’ by the TheEdge Research, pointing out that the company’s expansion abroad would help enhanced its sales base.

For the first quarter ended July 31, 2014 (1QFY14), Solid Automotive’s net profit doubled to RM2.23 million from RM1.16 million in the previous corresponding quarter. Revenue stood 16.2% higher on-year at RM31.48 million, of which 76% is contributed by its automotive electrical parts while the automotive engine mechanical parts and others contributed approximately 24%.

The group's principal markets are Malaysia and the Middle East. In the quarter, local sales accounted for 60.9% of group revenue, while overseas sales or exports accounted for the remaining 39.2%.

Listed on Sept 12 last year with an initial public offering price of 56 sen, the counter closed up 0.5 sen or 4.31% today at a record high of RM1.21, giving it a market capitalisation of RM181.50 million.