KUALA LUMPUR (Jan 16): Heavy selling resumed in shares of Rapid Synergy Bhd and YNH Property Bhd, companies linked to businessman Datuk Dr Yu Kuan Chon, as the two counters hit limit down again on Tuesday to extend the sell-off that accelerated since Jan 5.
On Tuesday, Rapid Synergy shares fell RM2.41 or 29.9% to RM5.65, after opening 16 sen or 1.98% lower at RM7.90 compared with its Monday close of RM8.06.
Meanwhile, shares of YNH also touched limit down at RM1.73, down 29.96% or 74 sen. The counter also opened six sen or 2.43% lower at RM2.41, from its previous close of RM2.47.
Including Tuesday, Rapid Synergy shares have hit limit down in four of its last five trading days.
In those five days, the counter lost a total of RM17.75 per share or 76% of value, from its Jan 9 close of RM23.40 — resulting in loss of RM1.9 billion in market capitalisation.
In that same period, YNH has lost RM1.57 per share or 47.58% of its value from its Jan 9 close of RM3.30. The company has lost RM829.73 million in market capitalisation in just the five trading days.
Meanwhile, Imaspro Corp Bhd, another Dr Yu-linked company, saw its shares fall another 18.47% or 29 sen to RM1.28 on Tuesday’s trading session. The counter has lost 63.2% or RM2.20 per share since Jan 9, culminating in RM170.4 million in market capitalisation erased in the period.
Combined, all three counters saw RM2.897 billion in market capitalisation wiped out in just the five-day period. Imaspro shares, however, recouped some losses towards Tuesday's trading close, to settle at RM1.37 — still down 20 sen or 12.74% from its previous lose of RM1.57.
For Rapid Synergy and YNH, the sell-off up until Tuesday has erased all gains by the counter since the beginning of a rally that started in October 2020 well through the last three years (2021-2023).
Imaspro shares, meanwhile, rallied in 2022, and sustained their elevated levels through much of 2023.
When comparing their share prices from their respective December 2023 peak (Rapid Synergy: RM29.50, YNH: RM4.98 and Imaspro: RM5.68), all three counters have lost a whopping RM4.61 billion in market capitalisation combined.
Dr Yu is the single largest shareholder in YNH Property with a 32.58% stake. His stake in Rapid Synergy is 22.8%, while he holds 14.6% in Imaspro.
At its December peak of RM29.50 prior to the steep drop, Rapid Synergy shares were trading at a whopping 206 times price-to-earnings ratio (PER), based on its trailing 12-month earnings per share of 14.31 sen, and a price-to-book value of 18.2 times based on RM1.62 in net assets per share.
Even after the counter dropped to RM5.65 currently, Rapid Synergy is still trading at 39 times PER and 3.5 times net book value.
Imaspro, after its latest sell-off, is still trading at 49 times PER, and 0.86 times price-to-book ratio.
For YNH, it was trading at 2.2 times net tangible assets (NTA) per share of RM2.19, at its December peak of RM4.98. The latest decline has pushed the counter to 1.27 times NTA. The group has been loss-making in the last four quarters.