KUALA LUMPUR (Sept 29): Shares of CN Asia Corp Bhd, a steel storage tank manufacturer, fell as much as 23% to its intraday low of 54.5 sen in early trade on Wednesday, emerging among the top losers' list.

At noon break, the stock was down 14 sen or 19.86% at 56.5 sen. The counter saw 27.62 million shares changing hands. It has been trading within the 52-week range of 21 sen and RM1.

At the current price, the company has a market capitalisation of RM92.92 million.

On Sept 21, CN Asia announced that its net loss narrowed to RM652,000 in the second quarter ended June 30, 2021 (2QFY21) from RM716,000 in 1QFY21, despite revenue falling by 12% to RM2.45 million compared with RM2.79 million in 1QFY21. The company had blamed the lower revenue on the slowdown in the business and lower activities in existing contracts as a result of reimplementation of the Movement Control Order in May 2021 that has affected its production progress.

On a year-on-year basis, however, the company's net loss widened from RM449,000 in 2QFY20, mainly due to raw material prices escalation and decrease in interest income during the quarter under review.

For the first half ended June 30, 2021, the group’s net loss narrowed to RM1.37 million from RM2.99 million a year earlier as its revenue increased 14.8% to RM5.24 million from RM4.56 million.

CN Asia expects the continued uncertainty in the global economic situation caused by the Covid-19 pandemic, coupled with volatility of the foreign currency exchange and the escalating raw material prices, will continue to pose challenges to the group. It warned that its overall performance for the financial year ending Dec 31, 2021 remains challenging.