KUALA LUMPUR: Harvest Court Industries Bhd’s share price surged by over 20% with some 54.23 million shares changing hands, making it the third most actively traded stock on Bursa Malaysia yesterday.
The share price of the wood-based product manufacturer climbed 23.7% or 9.5 sen to finish at 49.5 sen — the highest level since July 2005. The counter started on a soft note, sliding to an intra-day low of 39.5 sen amid the cautious sentiment in the broader market. But it reversed the downward trend in the afternoon trading session.
Harvest Court has been in the limelight of late. The stock has surged in value by more than five times from eight sen since the beginning of last month. The spike in its share price prompted the stock exchange to query it on unusual market activity (UMA) on Oct 17, when its share price jumped 41% to 20.5 sen from 14.5 sen the day before. Subsequently, Harvest Court has been on a rally.
Coincidentally, the share price rally started when businessman Datuk Raymond Chan Boon Siew, who owns Sagajuta (S) Sdn Bhd, bought into the company. Chan bought his stake from the company’s managing director Ng Swee Kiat.
After Ng’s divestment, Chan submitted a put option agreement to Affin Bank Bhd to acquire its 18.3% stake in Harvest Court at 20 sen per share.
Sagajuta is the developer of the 1Borneo and 1Sulaman developments in Kota Kinabalu, Sabah. The company had been in talks with Jerneh Asia Bhd for a possible asset injection into the latter. However, the deal fell through.
Chan, who currently holds a 13.38% stake, is also managing director of Sagajuta and he is now a non-executive director of Harvest Court.
The company also drew attention when it announced the appointment of Nazifuddin Najib, the son of Prime Minister Datuk Seri Najib Razak, as a non-executive director. Nazifuddin is also a director of Sagajuta.
Last Thursday, Chan’s appointment to Harvest Court proved useful as the company’s wholly-owned subsidiary, Harvest Lumber Sdn Bhd secured a two-year contract worth RM7.03 million to supply door leaves for the 1Sulaman and 1Likas projects in Kota Kinabalu, Sabah.
Harvest Lumber also bagged a RM6.1 million contract with Husham Trade Company, based in Turkey, according to filings with Bursa Malaysia.
The company slipped into losses for FY10 ended Dec 31. It incurred a net loss of RM2.7 million on revenue of RM6.43 million. In the first six months of 2011 the company was in the red with losses of RM678 million. This was an improvement as the group recorded a loss of RM1.35 billion for the same period in the corresponding period last year.
This article appeared in The Edge Financial Daily, November 3, 2011.
The share price of the wood-based product manufacturer climbed 23.7% or 9.5 sen to finish at 49.5 sen — the highest level since July 2005. The counter started on a soft note, sliding to an intra-day low of 39.5 sen amid the cautious sentiment in the broader market. But it reversed the downward trend in the afternoon trading session.
Harvest Court has been in the limelight of late. The stock has surged in value by more than five times from eight sen since the beginning of last month. The spike in its share price prompted the stock exchange to query it on unusual market activity (UMA) on Oct 17, when its share price jumped 41% to 20.5 sen from 14.5 sen the day before. Subsequently, Harvest Court has been on a rally.
Coincidentally, the share price rally started when businessman Datuk Raymond Chan Boon Siew, who owns Sagajuta (S) Sdn Bhd, bought into the company. Chan bought his stake from the company’s managing director Ng Swee Kiat.
After Ng’s divestment, Chan submitted a put option agreement to Affin Bank Bhd to acquire its 18.3% stake in Harvest Court at 20 sen per share.
Sagajuta is the developer of the 1Borneo and 1Sulaman developments in Kota Kinabalu, Sabah. The company had been in talks with Jerneh Asia Bhd for a possible asset injection into the latter. However, the deal fell through.
Chan, who currently holds a 13.38% stake, is also managing director of Sagajuta and he is now a non-executive director of Harvest Court.
The company also drew attention when it announced the appointment of Nazifuddin Najib, the son of Prime Minister Datuk Seri Najib Razak, as a non-executive director. Nazifuddin is also a director of Sagajuta.
Last Thursday, Chan’s appointment to Harvest Court proved useful as the company’s wholly-owned subsidiary, Harvest Lumber Sdn Bhd secured a two-year contract worth RM7.03 million to supply door leaves for the 1Sulaman and 1Likas projects in Kota Kinabalu, Sabah.
Harvest Lumber also bagged a RM6.1 million contract with Husham Trade Company, based in Turkey, according to filings with Bursa Malaysia.
The company slipped into losses for FY10 ended Dec 31. It incurred a net loss of RM2.7 million on revenue of RM6.43 million. In the first six months of 2011 the company was in the red with losses of RM678 million. This was an improvement as the group recorded a loss of RM1.35 billion for the same period in the corresponding period last year.
This article appeared in The Edge Financial Daily, November 3, 2011.
