KUALA LUMPUR (Nov 4): Shares of Boustead Heavy Industries Corp Bhd (KL:BHIC) fell to December 2006 levels — an 18-year low, after dropping 39.6% or 18 sen to close at 27.5 sen on Monday.
The thinly traded counter saw 3.22 million shares changing hands — 43.8 times higher than its 200-day moving average.
At 27.5 sen, the group’s market capitalisation stands at RM155.18 million.
The defence stock took a plunge at around 3.55pm on Monday and fell as much as 24.5 sen or 53.8% to 21 sen. This triggered a temporary suspension in the intraday short selling (IDSS) of the stock for the rest of the day.
The regulator said in a filing that the IDSS will be reactivated at 8.30am on Tuesday.
When contacted by The Edge, the company said it is not aware of the reasons for the sharp drop.
BHIC is slated to report its financial results for the third quarter ending Dec 31, 2024 (3QFY2024) before the end of this month.
Its largest shareholder is the Armed Forces Fund Board (LTAT), which holds 72.38% via Boustead Holdings Bhd, followed by AmBank Islamic Bhd stake with 4.96% and MBSB Bank Bhd with 4.92%. LTAT fully owns Boustead Holdings, which it took private last year.
For the first half of FY2024 ended June 30, 2024, BHIC returned to the black with a net profit of RM18.49 million, compared with a net loss of RM1.45 million in the first half of FY2023, as revenue jumped to RM120.12 million from RM39.16 million driven by higher maintenance, repair and overhaul (MRO) in submarine contracts.
In August, the defence company announced it had won a RM378 million contract to provide in-service support and performance for the Royal Malaysian Air Force's EC725 helicopters.