KUALA LUMPUR (Dec 9): Shares of TOYO INK GROUP BHD [] fell on Friday on concerns that its recent rally was overdone as its returns on investment in Vietnam’s US$2.5 billion (RM7.8 billion) power plant would be longer.
At 3.37pm, it was down 12 sen to RM1.65. There were 41,000 shares done at prices ranging from RM1.59 to RM1.71.
The FBM KLCI fell 15.17 points to 1,457.75. Turnover was 952 million shares valued at RM690.61 million. There were 155 gainers, 520 losers and 255 stocks unchanged.
The Egde FinancialDaily reported on Friday Toyo’s share price has benefited from the letter of approval it received from the Vietnamese government for the power plant, but realising the earnings may be a long way off.
It has taken over three years of hard work to obtain the letter, but Steven KC Song, managing director of Toyo, said on Thursday that the plant will take three to four years to build and estimated that it would only begin operating in 2017 or 2018.
It should be at least six to seven years before the US$2.5 billion project even begins turning in cash, yet Toyo’s share price surged as high as RM1.88 on Tuesday, with a 50 sen or 36.23% gain for the month.
Song had also said Toyo has yet to secure funding as it has not yet nominated a merchant bank to provide financial advice.
At 3.37pm, it was down 12 sen to RM1.65. There were 41,000 shares done at prices ranging from RM1.59 to RM1.71.
The FBM KLCI fell 15.17 points to 1,457.75. Turnover was 952 million shares valued at RM690.61 million. There were 155 gainers, 520 losers and 255 stocks unchanged.
The Egde FinancialDaily reported on Friday Toyo’s share price has benefited from the letter of approval it received from the Vietnamese government for the power plant, but realising the earnings may be a long way off.
It has taken over three years of hard work to obtain the letter, but Steven KC Song, managing director of Toyo, said on Thursday that the plant will take three to four years to build and estimated that it would only begin operating in 2017 or 2018.
It should be at least six to seven years before the US$2.5 billion project even begins turning in cash, yet Toyo’s share price surged as high as RM1.88 on Tuesday, with a 50 sen or 36.23% gain for the month.
Song had also said Toyo has yet to secure funding as it has not yet nominated a merchant bank to provide financial advice.
