KUALA LUMPUR (Aug 6): Shares of electronics manufacturing services firm Cape EMS Bhd (KL:CEB) plunged to an all-time low on Tuesday amid continued selling pressure.
The stock fell as much as 16.5 sen or 29.2% to 40 sen before recovering slightly to close at 40.5 sen, down 16 sen or 28.3%. It was the day's fifth biggest loser on Bursa Malaysia.
At 40.5 sen, the Johor-based company's market value has fallen to RM401.8 million. Since the beginning of the year, the stock has declined by 61.3% from RM1.05, erasing RM639.8 million in market capitalisation.
With more than 265 million shares changing hands, Cape EMS was the day's most active stock.
In the final minutes of trading on Tuesday, some 7.79 million Cape EMS shares, representing a 0.79% stake in the company, were traded off-market at 40.5 sen apiece, Bloomberg data showed. Combined, the off-market transactions were valued at RM3.15 million.
The stock has been under heavy selling since July 22, falling 59.4% or 57.8 sen over the past two weeks. Cape EMS managing director and CEO, Christina Tee Kim Chin, offloaded over 17.11 million shares during this period.
Notably, Tee also received a transfer of 20.4 million shares from her sister, Kim Yok, who is also an executive director, on Aug 1.
Tee’s shareholding in the company now stands at 38.38%, while Kim Yok’s stake has decreased to 4.75%, causing her to cease being a substantial shareholder.
When contacted by The Edge last week, Tee acknowledged the selling pressure but emphasised that the company’s profit margins remained strong. She expects revenue to continue growing this year and into 2025, supported by positive customer outlooks in green energy and data centres.
The company is set to release its second-quarter results this month. For the first quarter ended March 31, 2024, net profit surged 58% to RM13.41 million from RM8.5 million a year ago, due to improved performance in both industrial and consumer segments.
Quarterly revenue increased more than 12% year-on-year to RM154.48 million from RM137.35 million, driven by higher demand for its products, particularly in wireless communication equipment, electronic cigarettes, and light electric vehicles.