This article first appeared in The Edge Malaysia Weekly on May 18, 2026 - May 24, 2026

A major corporate exercise could take place at MKH Bhd (KL:MKH) and its 65.3%-owned subsidiary MKH Oil Palm (East Kalimantan) Bhd (KL:MKHOP), sources familiar with the company tell The Edge.

It is understood that, if all goes well, an announcement on the corporate exercise could be made as early as this week.

“It’s a material exercise; you can gauge from the big jump in share prices,” says a source, who spoke on condition of anonymity.

Executives of MKH and its subsidiary MKH Oil Palm could not be reached for comment.

MKH’s share price soared nearly 60%, or 54.5 sen, over two trading days to end the week at RM1.46 — its highest level since February 2024. Trading volume ballooned to 26.68 million shares last Friday. To put things in perspective, excluding those two sessions, MKH’s average trading volume over the past six months was barely 390,000 shares.

The rally added RM314.3 million, lifting the property developer’s market capitalisation to RM842.1 million. Despite the strong gains, the market value of MKH is less than half of its net asset per share of RM3.25 at end-2025.

MKH is in a net cash position, with a gross cash balance of RM680.15 million as at end-2025, compared with non-current borrowings of RM401.32 million and short-term loans of RM100.1 million.

The leap in MKH’s share price prompted an Unusual Market Activity query from Bursa Malaysia, with the regulator seeking clarification on whether any undisclosed corporate developments, rumours or reports relating to its business had triggered the surge.

The buying interest spilled over to MKH Oil Palm, which was listed in April 2024. The stock closed at 68.5 sen last Friday, gaining 14.17%, or 8.5 sen, over the past two trading days. Trading volume surged to 13.92 million shares last Friday.

MKH Oil Palm’s net asset per share was 55 sen as at end-2025 and its market capitalisation expanded to RM694.8 million, based on last Friday’s closing price of 68.5 sen.

Earnings-wise, MKH’s net profit was on an upward trend over the past three financial years ended Sept 30. Its net profit came in higher at RM112.86 million for FY2025, compared with RM101.9 million in FY2024 and RM81.27 million in FY2023. Revenue in FY2025 was lower, however, at RM953.27 million, compared with RM1.06 billion in FY2024 and FY2023.

Meanwhile, MKH Oil Palm’s earnings are being buoyed by strong crude palm oil prices. Its net profit soared to RM79.78 million in FY2025 versus RM63.56 million in FY2024 and RM30.14 million in FY2023.

The Chen family, via Chen Choy & Sons Realty Sdn Bhd, controls about 41% of MKH’s equity interest.

Tan Sri Alex Chen Kooi Chiew @ Cheng Ngi Chong, 82, is executive chairman of MKH; his younger brother Tan Sri Eddy Chen Lok Loi, 73, is its managing director.

Previously known as Metro Kajang Holdings Bhd, MKH also has a property investment division, which manages Plaza Metro Kajang and Metro Point Complex.

Suria Villa Sdn Bhd, one of its wholly-owned subsidiaries, holds 138 acres in Semenyih, Selangor, across four plots. Three are freehold, and 8.74 acres are leasehold on a 99-year lease expiring in 2096. The plots are carried at RM267.09 million collectively and were last revalued about 10 years ago.

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