KUALA LUMPUR (Nov 30): Bursa Malaysia Securities has frozen the upper limit price of Ralco Corp Bhd shares at RM1.24, after the counter traded at static limit up prices for two consecutive days.

Ralco rallied 93.75% or 60 sen to close at RM1.24 on Wednesday (Nov 30), its highest level since Feb 22, when it hit RM1.25.

At RM1.24, the group has a market capitalisation of RM63 million, based on a share base of 50.8 million shares.  

The stock was among Bursa Malaysia’s top gainers on Tuesday and Wednesday, both in terms of value and percentage.

It rose 30 sen or 46.88% to 94 sen on Tuesday, followed by another 30 sen or 31.91% rise to RM1.24 on Wednesday.

Ralco is mainly involved in manufacturing and trading of plastic bottles, containers, boxes and crates. It also engages in the provision of transportation services, according to the group’s 2021 annual report.  

Last week, the group announced a net profit of RM718,000 for the third quarter ended Sept 30, 2022, versus a net loss of RM96,000 a year ago, as revenue strengthened to RM15.22 million, from RM11.24 million.  

It attributed the increase in revenue to higher demand of both its injection and blowing moulding products.

On a quarter-on-quarter basis, Ralco’s net profit also improved from RM119,000 in the immediate preceding quarter, as revenue rose from RM14.8 million previously.

Ralco said the group’s performance improved on the back of an increase in sales orders by certain existing customers.

On prospects, Ralco said the overall demand by customers remains strong and is largely expected to improve in the fourth quarter.
 
Ralco’s managing director Tan Heng Ta is the group’s substantial shareholder, with a 17.2% equity interest.

This is followed by Datin Goh Phaik Lynn (10.02%), Tan Sri Tee Tiam Lee (9.09%) and Ong Aun Kung  (5.2%).

Tee is the executive deputy chairman of Salcon Bhd — a water and wastewater engineering firm.