KUALA LUMPUR: Shares of BSL Corporation Bhd closed lower at 57.5 sen on Tuesday ahead of its announcement about a proposed corporate exercise involving a major shareholder which did not get through.
At 5pm, the share price was down 15.5 sen to 57.5 sen. There were 7.32 million shares traded.
After market close, BSL informed Bursa Malaysia a third party, which had earlier verbally approached the major shareholder to acquire its stake, decided not to pursue the discussion further.
On Jan 6, BSL’s share price had hit limit-up, rallying from 43 sen on Jan 6 to close at 73 sen on Jan 7, prompting Bursa Malaysia Securities to query it over the unusual market activity.
On Jan 8, the company stated the major shareholder had informed it the discussion was only at the preliminary stage and it may or may not result in any firm offer by the third party.
Meanwhile, on Tuesday, the company announced its financial results for the first quarter ended Nov 30,2020.
It posted net profit of RM1.85mil on the back of revenue of RM43mil compared with net losses of RM297,000 on revenue of RM35.71mil a year ago. It has cash and cash equivalents of RM20.42mil as at Nov 30.
In the notes to the accounts, BSL said the group posted a significantly better results due to higher revenue from the precision metal stamping and the PCB assembly divisions.
For the precision metal stamping division, volume from the major customers were higher for the first quarter including from the TV and agricultural component segment, thus revenue and operating profits improved significantly as compared with a year ago.
For the PCB and module assembly division, the effect of higher selling price as well as continuous tight cost control contributed to higher margin and operating profits in 1Q, 2021.
The renewable energy segment recorded higher revenue but operating loss increased slightly as compared to 1Q, 2020 due to higher margin EPCC project recognised in 1Q, 2021.
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