KUALA LUMPUR (March 10): Tex Cycle Technology (M) Bhd, whose share price has almost doubled year to date, saw its largest shareholder Can Cycle Sdn Bhd offload five million shares or a 1.95% stake in the company, in what appears to be for taking profit.

In a filing with Bursa Malaysia, ACE Market-listed Tex Cycle said Can Cycle had sold the block of shares on March 7 (Tuesday). The transaction price, however, was not disclosed.

Based on Tex Cycle’s closing price of 83 sen on Tuesday, it is estimated that the 1.95% stake could be worth around RM4.15 million.

Following the shares divestment, the Klang-based Can Cycle still holds 101 million shares or a 39.43% direct stake in Tex Cycle.

It should be noted that Tex Cycle’s share price has been on the rise since the beginning of this year, soaring 96.3% from 40.5 sen on Jan 4, 2023.

The counter closed down two sen or 2.4% to 79.5 sen on Friday (March 10), giving it a market capitalisation of RM204 million.

Can Cycle is a private vehicle jointly-owned by Tex Cycle executive chairman Ho Siew Choong and his brothers, namely Siew Cheong and Siew Weng, as well as Periasamy Sinakalai, better known as S Perry.

Siew Cheong, Siew Weng and S Perry also sit on the board of Tex Cycle as executive directors.

The company, which specialises in the recycling and recovery of scheduled waste, saw continued improvements in its financial performance over the past three years.

It posted an annual net profit of RM3.29 million in the financial year ended Dec 31, 2020 (FY2020), before it jumped to RM6.16 million in FY2021 and subsequently RM9.39 million in FY2022.

Annual revenue also grew from RM23.75 million in FY2020, to RM28.73 million in FY2021 and RM31.46 million in FY2022.