Loss-making Paos jumps ahead of 4Q results

KUALA LUMPUR: Shares of loss-making PAOS Holdings Bhd surged to a high of 63.5 sen on Friday in the absence of any fresh positive news while it is due to announce its fourth quarter results ended May 31, 2021.

At 11.19am, it was up 18.5 sen or 45.1% to 59.5 sen. There were 33.39 million shares traded at prices ranging from 40.5 sen to 63.5 sen.

Its issued shares are 181.16 million units.

In the third quarter announcement for the period ended Feb 28, 2021, the company – which is involved in manufacturing, trading and integrated hotel and property operations -- was downbeat on the outlook for the year.

“Current economic situation continues to present challenging business conditions for the group. Higher operational costs in terms of rising cost of wages, utilities, other operational expenses and also fluctuations in foreign currency exchange rates remain as main challenges for the Group.

“Efforts will continuously be made in improving the performance of the respective segments. The Covid-19 pandemic has resulted in significant levels of uncertainty across the Malaysian as well as the global economy.

“The board of directors believes that the performance of the Group for the financial year 2020/2021 will be uncertain in view of the current economic conditions. Notwithstanding the above, the group will remain resilient and vigilant in addressing these uncertainties in its’ business activities moving forward," the company had stated.

In the third quarter ended Feb 28, 2021, it posted net losses of RM424,00 compared with RM120,000 a year ago. For the nine months, its net losses were RM1.31mil compared with RM836,000.