KUALA LUMPUR (July 18): Shares in ILB Group Bhd (KL:ILB) took a breather on Thursday after three consecutive days of gains, following the rooftop solar company's acquisition of a rival for RM98 million cash.

ILB rose as much as 7.3% or 4.5 sen to 66.5 sen, its highest since May 17, 2024.

The stock closed unchanged at 62 sen, valuing the company at RM121 million on Bursa Malaysia. Trading volume was over 1.3 million shares, more than double the 20-day moving average.

No institutional analysts cover the stock. 

The counter shed 11.5 sen or over 15% year to date following sharp decline in quarterly earnings. 

For the first quarter ended March 31, 2024, ILB posted a net profit of RM203,000 or 0.1 sen a share, down from RM3.36 million or 1.8 sen a share a year ago. Quarterly revenue dropped to RM3.19 million from RM13.86 million.

The company, formerly known as Integrated Logistics Bhd, is now actively investing in the renewable energy space following divestment of most of its warehousing and logistic operations over the past few years.

On Wednesday, ILB said it was acquiring a solar energy company and its assets for RM98 million cash, funded by internally generated funds and bank borrowings.

As at end-March, ILB’s deposits, cash and bank balances amounted to RM65.59 million, while its total borrowings stood at RM21.18 million, according to the group's latest financial statement.

ILB said the acquisition of Armani Sinar comes with a profit guarantee of at least RM8 million on an aggregate basis for the 2024, 2025 and 2026 financial years.

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ILB Group to acquire solar energy business for RM98 mil