KUALA LUMPUR (April 20): Tanco Holdings Bhd (KL:TANCO) said media reports and market commentary on the company, its soaring market capitalisation and its proposed development of a smart AI container port in Port Dickson called Midport may have contributed to the recent surge in its share price. It denied any fresh undisclosed corporate developments behind the unusual trading activity.
The property developer said that after making due enquiries with its board, major shareholders and relevant persons, it found no new material developments that had not already been announced.
“The board is not aware of any new or material corporate developments relating to the business and affairs of the company and its subsidiaries that have not been previously announced that may account for the trading activity,” Tanco said in a reply to Bursa Malaysia’s unusual market activity (UMA) query on Monday.
"There are presently endeavours at the stage of being discussed or negotiated, announcements on this will be duly made at the material time once such matters become more definitive or are finalised and confirmed," it added.
The group also said it was not aware of any rumour or report concerning its business that could explain the unusual trading.
“It is, however, noted that there are open articles by an external news portal per its observations, commentaries and/or analysis about the company, its market capitalisation, along with references to, inter alia, the Midport project. This could be a factor and possible explanation to account for the trading activity,” it said.
Tanco further said it is in compliance with Bursa Malaysia’s Main Market Listing Requirements, particularly on immediate disclosure obligations.
Bursa had earlier directed Tanco to explain the rally in its shares, which climbed to fresh highs on Monday. At midday, the stock traded at RM1.71, valuing the company at about RM10.5 billion, a level implying more than 1,000 times trailing earnings based on AskEdge data. It was the first UMA query from the regulator since the share price rally began in early 2025.
Following the UMA query by the exchange, the counter dropped nine sen or 5.33% to close at RM1.60, for a market capitalisation of RM9.81 billion.
Prior to the fall on Monday, shares in Tanco had gained over 40% year-to-date and nearly doubled since the start of 2025, despite the group reporting relatively modest earnings. Net profit for the financial year ended June 30, 2025 (FY2025) fell 33.8% to RM7.88 million from RM11.9 million in the previous year, as revenue declined 26% to RM128.46 million from RM173.53 million.
The group was loss-making for a decade before returning to profitability in FY2023, while its market capitalisation has overtaken listed property peers such as Eco World Development Group Bhd (KL:ECOWLD) and OSK Holdings Bhd (KL:OSK).
Midport, Tanco’s proposed RM3.53 billion artificial intelligence-enabled container terminal in Port Dickson, forms part of a broader resort city plan. According to Transport Minister Anthony Loke in an interview with The Edge Malaysia Weekly's April 6, 2026 - April 12, 2026 edition, Tanco's principle approval for the port allows them to proceed with planning and construction but it does not guarantee an operating licence. He said they must still meet all technical requirements before they can operate.