KUALA LUMPUR (Feb 16): A fund managed by Kenanga Investors Bhd acquired another 4.9% stake in Microlink Solutions Bhd, raising its stake in the digital systems integrator to 21.48%.  

According to a bourse filing on Friday (Feb 16), Kenanga Investors purchased 52.83 million shares on Thursday, equivalent to a 4.93% stake in the company, as the investment manager of Kenanga Islamic Absolute Return Fund as part of its portfolio investment.

This share acquisition increased the fund’s stake in Microlink to 21.48%. The filing did not disclose whether the transaction was done on- or off-market.

Separately, a block of 8.75 million shares was traded off market for RM7 million or at 80 sen apiece, Bloomberg data showed — a 9.1% discount to Feb 15’s close of 88 sen.

Kenanga Islamic Absolute Return Fund remains Microlink’s second-largest shareholder.

The company’s other substantial shareholders consist of largest shareholder Omesti Bhd with 34.27% and Sultan of Pahang Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah with 10.72%.

Kenanga Islamic Absolute Return Fund emerged as a substantial shareholder of Microlink back in March 2023 with a 5.96% stake.

Over the span of 11 months, the fund acquired the other 166.46 million shares — including Thursday’s 52.82 million shares.

In the first half of the financial year ending March 31, 2024 (1HFY2024), Microlink net profit slumped 72.35% to RM3.83 million or 0.36 sen per share, from RM13.86 million or 1.31 sen per share in the same period last year.

The decline was despite a 22.39% increase in revenue to RM134.47 million from RM109.86 million.

Microlink had said that the decline was due to lower margin from order fulfilments and progress billings.

Shares in Microlink ended unchanged at 88 sen, giving the company a market capitalisation of RM943.71 million

At its last trading price, the counter was trading at PE of 58 times. It last paid dibidends of 0.5 sen per share in FY2023. It is expected to post its 3QFY2024 results on Feb 21.