KUALA LUMPUR (Aug 5): Cape EMS Bhd (KL:CEB) managing director and chief executive officer Christina Tee Kim Chin sold some 15.22 million shares in the electronics manufacturing services firm, whose share price tumbled 11 sen or 16.3% to close at an all-time low of 56.5 sen on Monday.
According to a bourse filing, Tee offloaded the block of shares for a total of RM8.69 million on Monday. This translates to an average selling price of 57.1 sen per share. Cape EMS dropped to an intra-day low of 54.5 sen on Monday.
Since July 22, Cape EMS had fallen 42.5% or 41.8 sen within two weeks. Year-to-date, the stock is down by 16.3%.
With 61.29 million shares changing hands, Cape EMS was among the day's 20 most active stocks on Bursa Malaysia. The Johor contract manufacturer is now valued at a market capitalisation of RM560.48 million.
Following the share sale, Tee's shareholding in the company dropped to 38.38% from 39.92%.
When contacted by The Edge last week, Tee said Cape EMS was aware of the selling pressure on its share price but stressed that the company’s profit margin remained very healthy and expected revenue to continue to deliver this year and in 2025, hinging on positive customer outlooks from green energy and data centres.
The company is slated to release its second-quarter results this month. In the first quarter ended March 31, 2024, net profit jumped 58% to RM13.41 million from RM8.5 million a year ago, due to better performance from both industrial and consumer segments.
Quarterly revenue increased more than 12% to RM154.48 million from RM137.35 million, driven by increased demand for its products, particularly in wireless communication equipment, electronic cigarettes, and light electric vehicle segments.