This article first appeared in The Edge Malaysia Weekly on November 24, 2025 - November 30, 2025

Usually, a company like Perak Transit Bhd (KL:PTRANS), which operates a mundane business like managing public transport terminals, would not draw any attention when it announces its results. But this time around, the situation was different because there has been a sharp selldown of its shares over the last one month.

The selldown was triggered by the forced selling of shares related to the company’s major shareholder, Datuk Seri Cheong Kong Fitt, whose stake has been cut down to 9%.

Cheong used to own 23.5% of Perak Transit, which derived its income primarily from rents and advertisements at its transport terminals.

Perak Transit’s quarterly results were closely perused for clues as to why Cheong’s shares came under forced selling. On that score, the results did not spring any surprises.

They were fairly decent with the company recording a profit before tax of RM25.8 million on turnover of RM49.1 million for the period ended Sept 30, 2025, indicating a gross margin of just above 50%.

Perak Transit’s bottom line was higher than that in the previous corresponding period, although turnover was lower. 

At the same time, its borrowings were down by about 10% to RM631.5 million while its cash pile stood at RM261 million against RM285 million a year ago.

Perak Transit even declared a small dividend for the quarter, keeping its track record of declaring dividends every quarter intact.

While the numbers, on the whole, looked healthy, what stuck out were its receivables, which had risen to RM66.4 million from RM28.3 million a year ago — a leap of more than 100%.

According to an analyst report, the rise in receivables was due to a delay in rental payments.

Historically, Perak Transit’s trade receivables have been less than RM30 million. During the pandemic, however, they rose as high as RM45.6 million in the financial year ended Dec 31, 2020. But by 2023, they were back to less than RM30 million.

Usually, trade receivables rise when the business environment is tough. But this time, receivables are rising even when business conditions are not dire.  And it is happening amidst uncertainty over who absorbed the company’s shares in the recent selldown.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.