Johore Tin plunges 20% on RPT announcement

KUALA LUMPUR: Shares of Johore Tin Bhd fell by 20% today following the group’s announcement of its latest quarterly earnings as well as a related party transaction involving a subsidiary company.
 
The shares fell to a low of RM2.18 before rebounding to RM2.27 as at 3PM, or a 20% decline. The stock closed at RM2.80 yesterday.
 
In a filing to the exchange yesterday, Johore Tin disclosed that it had entered into a series of transactions with Able Perfect Sdn Bhd, a company that is majority owned by Johore Tin’s managing director Ng Keng Hoe.
 
Apart from his 11% stake in Johore Tin, Ng is also a managing director of Able Perfect where he hols a 94% stake.
 
The transactions were related to three of Johore Tin’s subsidiaries with Able Perfect and totalled RM1.63 mil.
 
According to the company’s audit committee, the terms of the transactions are considered to be in the best interest of the group and are not detrimental to its shareholders.
 
In a separate announcement, the company also announced that it has agreed to provide a corporate guarantee amounting to USD1.84 mil to secure a loan facility from AmBank Bhd to Able Diaries Sdn Bhd, a Johore Tin subsidiary.
 
The company reported a net profit of RM3.29 mil from RM97.92 mil in revenue for its latest quarter ended Sept 30.
 
In comparison, it reported a net profit and revenue of RM2.94 mil and RM90.66 mil respectively over the same quarter a year ago.