KUALA LUMPUR (March 6): Shares of Elridge Energy Holdings Bhd (KL:ELRIDGE) fell sharply on Friday to their largest single-day decline on record, triggering a suspension of intraday short-selling in the stock for the rest of the day.

The biomass fuel producer’s shares fell nearly 30% or 38.5 sen to 90.5 sen — their lowest level since Nov 18, 2025. The counter recovered slightly to close at 97 sen, with 24.73 million shares changing hands, but was still down 32 sen or 24.81%. At the last price, the company is valued at roughly RM2 billion.

“Elridge continuously evaluates opportunities that may enhance shareholder value as part of its ongoing business strategy. However, the company is not in a position to comment on any specific matters at this time,” the company's spokesperson told The Edge when asked about the recent share price fluctuations and whether any corporate exercise could be affecting the stock.

Elridge Energy is 20%-owned by electrical equipment distributor Mikro MSC Bhd (KL:MIKROMB), which also fell by 12.5% or 5.5 sen during intra-day trade to 38.5 sen. Shares in Mikro MSC eventually closed at 40 sen, still four sen or 9.09% lower. 

Elridge's other shareholders include Kayavest Sdn Bhd with a 16.37% stake, followed by Kenanga Islamic Absolute Return Fund with 12.08%, according to its latest annual report released on April 30, 2025. 
     
Elridge spokesperson added that the group’s overseas expansion plans remain on track, and it would make “any appropriate announcement to Bursa Malaysia” should there be any material development requiring such disclosure.

Elridge, listed on the ACE Market of Bursa Malaysia in August 2024, mainly manufactures and supplies biomass fuel products, particularly palm kernel shells (PKS) used by biomass power plants as a renewable energy source.

The last corporate exercise by the company was in February when Elridge signed an agreement with Berkana Power Company Ltd to supply an estimated 100,000 tonnes per year of PKS, including Green Gold Label-certified PKS, to Thailand. The supply is expected to commence in 2026, involving about 10 shipments annually, with pricing reviewed quarterly.

The company has also been expanding its export footprint across Asia. Beyond Japan and Thailand, Elridge is also expanding into South Korea, China and Indonesia as it diversifies its offtake base.

“With regard to the company’s ventures in the Thailand and Indonesia markets, there are currently no material issues or developments that would warrant an announcement. From a business perspective, the group’s operations and plans are progressing as planned,” the spokesperson said.

Under Bursa Malaysia rules, intraday short selling is automatically suspended when the last done price of an approved security falls by more than 15% or 15 sen from its reference price. Short selling in Elridge shares will resume on Monday (March 9) at 8.30am.

Friday’s sell-off comes after a strong rally in recent months. The stock had climbed to a record high of RM1.52 on Feb 27 but has since retreated over the past several trading sessions. At the current level, the share price has returned to around its level at the start of the year, wiping out most of the gains recorded during the recent surge.

Elridge is currently covered by Apex Securities, which has a “hold” recommendation on the stock with a target price of 97 sen, a level that is now below the latest traded price.

The company reported a 39% jump in net profit of RM57.3 million for the financial year ended Dec 31, 2025 on higher revenue and improved product margins from the sale of biomass fuel products. Earnings per share grew to 2.87 sen from 2.06 sen the year before. 

Revenue was up 11% for the year to RM431.98 million.