JHM (0127) - JHM Consolidated Bhd proposes one-for-one bonus issue

JHM (0127) - JHM Consolidated Bhd proposes one-for-one bonus issue

This article first appeared in The Edge Financial Daily, on April 7, 2017.

KUALA LUMPUR: JHM Consolidated Bhd, whose share price has surged 30% since the start of this month, announced a proposed one-for-one bonus issue plus a proposed private placement to third parties.

The announcement came after the company was issued an unusual market activity query by Bursa Malaysia yesterday.

In its reply to the stock exchange, JHM said it was unaware of the reasons for its share price rally but it noted the proposed bonus issue and share placement.

The company also highlighted its improved earnings in the reply.

The precision miniature engineering metal parts and components manufacturer’s share price climbed to an intraday high of RM4.40 yesterday before retreating to close at RM4.18.

The little-known stock has soared almost 10 times from 47 sen over the past year.

JHM posted a net profit of RM20.33 million or 16.48 sen a share for the financial year ended Dec 31, 2016 (FY16), which increased more than three times from RM6.45 million or 5.25 sen a share in FY15. Meanwhile, its revenue was up 46.81% to RM193.38 million from RM137.72 million a year ago.

The company attributed the marked increase in revenue to the continuous, favourable demand conditions for automotive LED lighting, which contributed to 80% of the group’s total revenue.

JHM (0127) - JHM Consolidated Bhd proposes one-for-one bonus issue