KUALA LUMPUR (April 26): Menang Corp (M) Bhd, which was issued an unusual market activity (UMA) query earlier on Wednesday (April 26), said ongoing talks to build a digital hub in Negeri Sembilan, as well as potential land acquisitions in the state and Klang, Selangor, could be the reasons behind the surge in its share price and volume.
The property development and management company said it is in discussions with the Negeri Sembilan state government via Invest NS on the development of a digital hub in the state.
Both the digital hub and land purchases are currently under evaluation and/or pending a decision, according to its filing on Wednesday.
“The group will make the necessary announcement(s) in compliance with the Main Market Listing Requirements of Bursa Securities upon the execution of any agreement(s) in relation to a) and b) above,” said Menang in its reply to Bursa Malaysia.
The company was queried after its share price surged 3.4% to hit an intraday high of 91.5 sen — exceeding its one-year range and the highest in over 20 years, before closing unchanged to 88 sen on Wednesday’s trade.
At the closing price, Menang’s market capitalisation was RM448.32 million.
Its share price has also risen 10% over the past week from 80 sen on April 20, and 83.33% year-to-date. The price run-up started in late March.
Menang’s trading volume stood lower at 3.03 million shares compared to 5.62 million shares on Tuesday (April 25), but was higher than its 200-day volume average of 236,548 shares.
On March 24, Menang's former director Dr Christopher Shun Kong Leng ceased to be a substantial shareholder of the company, after offloading his entire shareholding of 48.13 million shares or a 9.45% stake via a direct business transaction on March 22.
He was appointed to the board of Menang in February 1991, and resigned as a non-independent and non-executive director in January 2021.
Menang’s net profit for the second financial quarter ended Dec 31, 2022 (2QFY2023) rose to RM3.59 million, from RM1.69 million a year earlier, due to lower interest and tax expenses. Quarterly revenue also increased to RM22.18 million, versus RM21.76 million previously.
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