This article first appeared in The Edge Malaysia Weekly on May 4, 2026 - May 10, 2026

THE goings on at property developer Tanco Holdings Bhd (KL:TANCO) are bewildering, to say the least, and what controlling shareholder and group managing director Datuk Seri Andrew Tan Jun Suan is up to is anyone’s guess.

On April 20, Tanco was slapped with an unusual market activity (UMA) query by Bursa Securities over the “unusual price rise” of the company’s shares, as its stock hit a record high of RM1.72 in intra-day trading on the same day, translating into a 43% year-to-date gain.

In its reply, Tanco said that “after making due enquiry with the board of directors, major shareholders of the company and such other relevant persons”, the approvals obtained for its proposed development of a smart artificial intelligence (AI) container port in Port Dickson, Negeri Sembilan, along with subsequent joint-venture (JV) agreements with Menteri Besar Negeri Sembilan (Pemerbadanan) and related proposals pertaining to the project, could be reasons for the unusual gains in its share price.

It also cited contracts with China Civil Engineering Construction Corp for bids on transport infrastructure projects in Malaysia; with CNECC Engineering (Malaysia) Sdn Bhd for warehousing; with CCCC Dredging Southeast Asia Sdn Bhd, presumably for dredging of the port’s waters; and a separate JV involving Ocean Bridge International Ports Management Co Ltd for port management. The company further referred to announcements on approvals for applications from Majlis Perbandaran Port Dickson.

After the lengthy explanation on why Tanco shares were actively traded and recorded such gains, the company did an about-turn, stating in its UMA reply: “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.”

However, it also said, “There are open articles by an external news portal … about the company, its market capitalisation, along with references to, inter alia, the Midport Project. This could be a factor and possible explanation for the trading activity.”

Still, having obtained the various approvals, questions remain on how Tanco will finance the construction of the port.

In other words, Tanco is suggesting that news reports may have driven the gains in its share price and trading volume. By last Friday, following the UMA query on April 20, the stock had tapered off to close at RM1.56, giving it a market capitalisation of RM9.57 billion.

Thus far, Bursa Securities has yet to respond to Tanco’s reply to the UMA, raising questions as to whether sufficient regulatory scrutiny is being applied, given the scale of the price movement and trading activity.

Perhaps the query should have been directed to Tan specifically — but more importantly, it begs the question of whether regulators are satisfied with the explanations provided, or if further clarification is warranted.

A cursory look at Tanco’s shareholding changes indicates that Tan has been actively buying and selling the company’s shares, which is likely to be the reason for the gains in its share price. In that context, it is reasonable to ask whether such concentrated trading activity, accounting for a significant portion of daily volume, has drawn adequate regulatory attention.

From April 21 to 30, or over eight trading days, Tan traded, either buying or selling, 194.35 million shares, averaging 24.29 million shares a day. According to Bloomberg, the average daily trading volume of Tanco shares over the same period was 42.28 million shares, indicating that Tan accounted for 57.45% of the total.

As at April 30, Tan held a direct stake of 19% and an indirect stake of 34.62% in Tanco — the latter via TJN Capital Sdn Bhd and Millennium Land Sdn Bhd — giving him a controlling stake of 53.62%, or 3.23 billion shares.

Despite this level of trading activity, Tan’s overall shareholding has remained largely unchanged. In early April, he controlled 53.39% of Tanco, or 3.22 billion shares, which is broadly the same number he holds now.

So, why is Tan trading his own stock in such a manner, if not to meaningfully increase or reduce his stake?

Despite the gains in its share price, Tanco’s financials have been far from inspiring.

For the first half ended Dec 31, 2025 (1HFY2026), Tanco posted a net profit of RM4.13 million on revenue of RM86.71 million. Its cash and bank balances stood at a mere RM11.21 million, while total borrowings amounted to RM55.8 million, of which RM8.53 million are due within a year.

There is also no indication of any major write-offs or impairment exercises during the period that might distort the numbers.

Bloomberg data shows Tanco trading at an astounding price-earnings multiple of 621.93 times, while its operating cash flow for the six-month period was a negative RM17.11 million.

On its prospects, Tanco offers a lengthy explanation, essentially stating that “the group’s business segments are expected to remain supported by Malaysia’s stable economic conditions”, with the economy anticipated to remain resilient through the remainder of FY2026, driven by domestic demand, infrastructure development, improving investor confidence and moderating inflation.

For a company that generated just RM4.13 million in net profit for 1HFY2026, yet commands a market cap of nearly RM10 billion, the valuation remains perplexing.

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