Hwa Tai surges 19.51% amid active trade as CEO raises stake

Hwa Tai surges 19.51% amid active trade as CEO raises stake
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KUALA LUMPUR (Oct 5): Biscuit manufacturer Hwa Tai Industries Bhd rose as much as 16 sen or 19.51% to a one-month high of 98 sen on Tuesday morning amid active trade.

At 11.59am, the counter pared some gains at 92 sen, still up 10 sen or 12.2%.

The counter, which was among the most actively traded stocks, saw 41.61 million shares traded.

Last Friday, the group’s chief executive officer Datuk Soo Chung Yee announced in a bourse filing that he had on Sept 27 acquired 130,000 shares in the company at 69.26 sen per share via open market.

Following the acquisition, his direct shareholding in the company has been increased to 1.03 million shares or 1.38%.

On Sept 2, the group said in a bourse filing it recorded a net loss of RM956,000 for the second quarter ended June 30, 2021, from a net profit of RM175,000 a year ago, due to decrease in revenue from the domestic market.

The group’s quarterly revenue fell 20.95% to RM15.15 million, from RM19.16 million a year ago, due to reduction to 60% work force in compliance with the government’s directives for combating Covid-19 pandemic which had pulled its whole production capacity down, consumers’ tremendously low purchasing power and Covid-19 infection spiralling out of control that affected its domestic sales badly.

For the first half ended June 30, 2021, the group also posted a net loss of RM418,000 as compared to a net profit of RM318,000 a year earlier, while revenue slipped 4.02% to RM35.34 million, from RM36.82 million.

The group anticipates macroeconomic conditions in Malaysia to remain challenging.

“The group will be vigilant and respond accordingly to the changing business dynamics and market environment with our constant focus in improving its performance,” it said.

Surin Murugiah