KUALA LUMPUR (May 9): MCE Holdings Bhd said Brahmal Vasudevan has emerged as a substantial shareholder with a 5.02% indirect stake in the automotive parts and accessories manufacturer.

Brahmal held 6.2 million shares in MCE via Creador Conscienta Ltd, who raised its stake beyond 5% following the acquisition of 100,000 shares earlier on Thursday.

Shares of MCE closed 13 sen or 8.23% higher at RM1.71 as trading value surged to 2.14 million shares, nearly five times its 65-day trading volume of 406,820 shares. The counter is up 18.75% this year.

At its last close, MCE had a market capitalization of RM211.28 million. Brahmal’s stake is valued at RM10.6 million.

MCE’s other substantial shareholders include Dulcet One Holdings Sdn Bhd (19.1%), followed by Woo Chiew Loong (8.9%).

MCE Holdings is en route for its third consecutive year of profit, rebounding from four years in the red from the financial year ended July 31, 2018 (FY2018) to FY2021.

In 1HFY2024, MCE net profit rose 21.26% to RM9.4 million from RM7.75 million, as revenue rose 4.7% to RM81.33 million from RM77.68 million.

The group has two facilities in Johor Bahru and Klang catering to the manufacturing of automotive parts. It is currently planning to diversify into the healthcare sector, but details are not finalised amid the subdued economic environment, the group said in its latest annual report.

Based on trailing 12-month earnings per share of 13.79 sen, MCE last traded at historical price-to-earnings ratio of 12.4 times. The group paid dividends of 5.5 sen per share in FY2023, and interim dividend of 1.5 sen for FY2024.