Can SCIB 9237 SARAWAK CONSOLIDATED INDUSTRIES BERHAD get itself out of the rut?
Sarawak Consolidated Industries Bhd has been seeing a lot of interest recently. In fact, the counter surged some 53.6% in the past one month.
On May 31 whereby the stock rose 16.2% to close at 22 sen before touching a 52-week high of 24 sen.
It was trading at a low of 12 sen two months ago.
Does the upward movement signal better days ahead for the beleaguered counter?
In a surprising move, several shareholders who jointly hold more than 10% stake in the SCIB have decided to remove almost its entire board members.
Eight shareholders of SCIB want to hold an extraordinary general meeting (EGM) to remove three directors from the board and replace them with four new candidates.
Based on the latest announcement, the EGM will be heldo no 28 June.
Among the directors on the chopping board include Azri azerai, Mohd Shakir Shahimi and Nuraiman Shaiful Annuar, all of whom are also from PN17 company Bintai Kinden.
Shareholders must have been disappointed that SCIB is still loss making.
In the 3rd quarter ended Mar 31, 2023, it continued to make losses albeit a slightly lower loss at RM1 million versus RM1.9 million a year earlier.
Its revenue declined marginally to RM32.4 million in 3QFY23 from RM37.5 million a year ago.
Meanwhile, Bintai Kinden plunged into hefty losses to RM50.3 million in 4QFY23 from a net profit of RM841,000 a year ago.
Understandably, shareholders may want a drastic change, starting from the people who have been running the show.
Essentially, one would hope that changes in the boardroom will boost he share price as there is somewhat a glimmer of hope once the existing directors are removed.
No wonder the momentum of this stock has been very strong in May.
The counter has been suspended since Nov 9, 2021, after failing to submit the annual report by Nov 8 as directed by Bursa.
Investors may find relief that the Sarawak-based civil engineering group
SCIB got a new lease of life after submitting its delayed annual report. The counter flew as high as 44% when it resumed trading on Jan 19
Whether the company can see better days remain to be seen but it is probably seeing more changes that will hopefully give the company a chance of a turnaround.
#SCIB
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STARBUCK
16 minutes ago
