KUALA LUMPUR: Shares in SYF Resources Bhd, a rubberwood furniture manufacturer, emerged on the top gainers list yesterday, after rising to their highest level in more than four years.
Bucking the downtrend on the local bourse, the stock rose 25% to an intra-day high of 72 sen, its highest level since May 2007. It finished at 65.5 sen yesterday, up 14% from its close of 57.5 sen the day before.
Trading volume rose to 9.05 million shares — its peak in over two years.
Year-to-date, SYF’s share price has gained 156% with market capitalisation of RM111.4 million.
The reason behind the sudden interest is unclear. The senior management of the company could not be reached for comment at press time.
SYF announced on Oct 25 that its status as a Practice Note 1 (PN1) company had been lifted upon the completion of several corporate proposals.
The company was labelled PN1 in May last year due to a default on payment, after failing to make interest payments amounting to RM2.19 million. The default was due to a lower demand for its products.
“For the past two years, the company had incurred substantial operating losses due to the global economic crises which affected the furniture industry. As the company’s furniture products are mainly for the export market, demand was affected by the downturn in the economies of the various markets exported to,” said SYF.
The company’s earnings were also affected by higher cost of materials and fluctuation in the US dollar.
SYF’s restructuring involved a capital reduction, rights issue and issuance of 102.7 million redeemable convertible secured loan stocks (RCSLS) of 25 sen each.
As at end-July, the company was still in the red. For 4QFY11 ended July 31, it incurred a net loss of RM340,000 compared with net profit of RM863,000 a year ago while revenue fell 7.5% to RM42.6 million.
For the full year, its net loss shrunk to RM2.2 million from RM7.8 million in FY10. Revenue dipped 9.4% to RM156.1 million in FY11.
It attributed its poor quarterly performance for 4QFY11 to lower production output due to a shortage of foreign workers and the weakening US dollar, in addition to provision for a late interest payment on bank borrowings under its debt restructuring scheme.
It has a net debt position of RM98.3 million, with RM3.64 million in cash and RM101.9 million in short-term borrowings. Its net assets per share stood at 30 sen as at July 31, 2011.
SYF’s activities comprise the planting of rubber trees for commercial harvesting, the logging of plantation wood, saw milling, treatment of timber, and the manufacturing of furniture parts and components.
This article appeared in The Edge Financial Daily, November 11, 2011.
Bucking the downtrend on the local bourse, the stock rose 25% to an intra-day high of 72 sen, its highest level since May 2007. It finished at 65.5 sen yesterday, up 14% from its close of 57.5 sen the day before.
Trading volume rose to 9.05 million shares — its peak in over two years.
Year-to-date, SYF’s share price has gained 156% with market capitalisation of RM111.4 million.
The reason behind the sudden interest is unclear. The senior management of the company could not be reached for comment at press time.
SYF announced on Oct 25 that its status as a Practice Note 1 (PN1) company had been lifted upon the completion of several corporate proposals.
The company was labelled PN1 in May last year due to a default on payment, after failing to make interest payments amounting to RM2.19 million. The default was due to a lower demand for its products.
“For the past two years, the company had incurred substantial operating losses due to the global economic crises which affected the furniture industry. As the company’s furniture products are mainly for the export market, demand was affected by the downturn in the economies of the various markets exported to,” said SYF.
The company’s earnings were also affected by higher cost of materials and fluctuation in the US dollar.
SYF’s restructuring involved a capital reduction, rights issue and issuance of 102.7 million redeemable convertible secured loan stocks (RCSLS) of 25 sen each.
As at end-July, the company was still in the red. For 4QFY11 ended July 31, it incurred a net loss of RM340,000 compared with net profit of RM863,000 a year ago while revenue fell 7.5% to RM42.6 million.
For the full year, its net loss shrunk to RM2.2 million from RM7.8 million in FY10. Revenue dipped 9.4% to RM156.1 million in FY11.
It attributed its poor quarterly performance for 4QFY11 to lower production output due to a shortage of foreign workers and the weakening US dollar, in addition to provision for a late interest payment on bank borrowings under its debt restructuring scheme.
It has a net debt position of RM98.3 million, with RM3.64 million in cash and RM101.9 million in short-term borrowings. Its net assets per share stood at 30 sen as at July 31, 2011.
SYF’s activities comprise the planting of rubber trees for commercial harvesting, the logging of plantation wood, saw milling, treatment of timber, and the manufacturing of furniture parts and components.
This article appeared in The Edge Financial Daily, November 11, 2011.
