There was a surge in interest in some of the China-based companies listed on Bursa Malaysia, which are also known as red chips, dominating the list of the most actively traded stocks.
Leading the pack was Sino HuaAn International Bhd. The frenzy buying could be due partly to Sino Hua-An’s net profit of RM21.99 million in its second quarter of financial year 2017 (2QFY17) — the first quarterly profit in at least two financial years.
However, the metallurgical coke producer had warned that it had no development on regularisation plan, which it must submit to Bursa Malaysia by Dec 15 2017 or face delisting. Sino Hua-An is a Malaysian company that produces and sells metallurgical coke in Shandong, China.
Despite the rise in share prices, red chips have been under fire for issues with their financial reports and poor financial performances. Hence, observers have doubts about the sustainability of the interest in this group of counters.
Practice Note 17 (PN17) company Maxwell International also faces delisting if it fails to submit its regularisation plan to the exchange by Jan 31, 2018. The sportswear manufacturer had been questioned by its auditors, Baker Tilly Monteiro Heng, on the authenticity of its cash holdings, thus triggering its PN17 status.
Meanwhile, Xingquan International Sports Holdings Ltd, Multi Sports Holdings Ltd and China Automobile Parts Holdings Ltd will continue to be suspended until further notice for failing to release their quarterly reports for the financial period ended June 30, 2017.
Multi Sports said it expected to issue its outstanding quarterly results on or before Feb 28, 2018.
On the other hand, HB Global announced on 05 Sept 2017 that it is still assessing suitable investors to “inject new capital and/or new businesses into the group, which may involve a reverse takeover exercise or right issues”.
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