This article first appeared in The Edge Financial Daily, on January 21, 2016.
C.I Holdings Bhd (+ve)
Shares of C.I. Holdings (CIH) rose 3.7% to close at RM3.10 on active trade yesterday, with over 2.2 million shares changing hands. In comparison, its average 200-day trading volume was just 255,431 shares.
CIH is primarily engaged in the trading, manufacturing and packaging of all types of edible oils, which accounted for 89.5% of its revenue in FYJune2015. The company also manufactures and distributes tap and sanitary ware.
For 1QFY2016, revenue grew 197.1% y-o-y to RM260.1 million while net profit surged more than 11-fold to RM10.1 million. This was due to net forex gains totaling RM4.4 million and higher contribution from the edible oil products division, which included contribution from its 60%-owned subsidiary Palmtop Vegeoil Products Sdn Bhd (Palmtop), acquired in May 2015.
Last November, Palmtop proposed to acquire the entire stake of Continental Palms Pte Ltd for S$500,000 (RM1.5 million) from Dato’ Sukumaran s/o Ramasamy, who is also a director and substantial shareholder of Palmtop, and a non-independent director of CIH.