TH Heavy falls 4.17%, a day after Quek ceases to be substantial shareholder

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KUALA LUMPUR (April 16): TH Heavy Engineering Bhd (THHE) which is involved in the fabrication of offshore oil and gas (O&G) facilities, saw its share price fall 1.5 sen or 4.17% today to 34.5 sen, with about 16.3 million shares traded, a day after banking tycoon Tan Sri Quek Leng Chan ceased to be a substantial shareholder in the company.

According to a Bursa filing yesterday (April 15), Quek had disposed of some 38.86 million shares or 3.47% of THHE (fundamental: 0.35; valuation:0.3) via his indirect stake in Guoline Capital Ltd, Guoline Capital Assets Ltd, Hong Leong Company (M) Bhd and HL Holdings Sdn Bhd.

Quek, who is rumoured to have an interest in the oil and gas industry, chairs privately-held conglomerate Hong Leong Co (M) Bhd, which is involved in the finance, property and food sectors. Guoline is a subsidiary of the group.

Quek first emerged as a substantial shareholder in THHE in May 2013, with 92.8 million shares in the company.

With the disposal yesterday, he should still hold about 53.94 million shares or about 4.81% indirect stake in THHE.

He also has an indirect 6.49% stake in marine offshore service provider Alam Maritim Resources Bhd, through his vehicle Associated Land Sdn Bhd, after emerging as a substantial shareholder in Alam Maritim last year.

His associate Paul Poh also holds a 7.86% stake in Alam Maritim (fundamental:1.6; valuation: 1.1), through his vehicle Caprice Capital International Ltd.

(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.)