KUALA LUMPUR (July 30): Trading in the shares of MMM Group Bhd (KL:MMM), formerly known as Asia Media Group Bhd, will be suspended on August 7, with the stock possibly delisted on September 4, subject to an appeal being filed.

This follows Bursa Malaysia Securities’ decision to reject MMM’s proposed regularisation plan under Practice Note 17 (PN17) of the Main Market Listing Requirements, citing doubts over the plan’s viability in sustaining and expanding the company’s core business operations.

Bursa Securities highlighted that the plan lacked sufficient depth in addressing the underlying issues that led to MMM’s PN17 classification. Notably, the projected improvement in shareholders’ equity stems primarily from a proposed capital reduction rather than operational profitability.

The regulator also noted that MMM’s financial performance has deteriorated, with revenue declining in the financial years ended March 31, 2024 (FY2024) and FY2025, despite industry data showing a 3.66% rebound in Malaysia’s out-of-home advertising market in 2024. The company captured only 0.75% of the RM990 million market in 2024, with revenue of RM7.41 million.

Operational metrics also raised concerns. MMM’s digital billboard utilisation rate stood at 30% to 40%, while its lift-up advertising projectors recorded a take-up rate of around 30%.

As at May 31, the group’s remaining orderbook amounted to RM4.7 million, and it reported negative operating cash flows of RM3.05 million as at March 31.

Profitability over FY2023 to FY202025 and the three-month period ended March 31, 2025 was largely driven by other income — specifically fair value gains on investments.

Excluding these non-operational gains, MMM would have posted a reduced profit after tax of RM0.67 million in FY2023, and losses after tax of RM1.18 million in FY2024, RM1.14 million in FY2025, and RM410,000 million for the three-month period.

Nevertheless, Bursa Securities also noted that if an appeal is filed against the delisting by August 29, the September 4 delisting would be deferred pending a decision on the appeal. “However, Bursa Securities will proceed to suspend the trading of the company’s securities on Aug 7 even though the decision on the company’s appeal is still pending,” it added.

MMM slipped into PN17 status in October 2019 after its shareholders' equity fell to less than 25% of its issued capital. In August 2021, its external auditor Messrs CAS Malaysia PLT highlighted a material uncertainty related to a going concern in its financial statements for the financial year ended March 31, 2021.

Shares in MMM closed unchanged at six sen on Wednesday, valuing the company at RM18.68 million.