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The stock hit an intraday low of 20 sen, a 6.5 sen fall, from yesterday’s closing of 26.5 sen, an 18.6% jump for the day. It subsequently pared its losses by the close today, falling 18.87% or 5 sen, valuing the company at just RM56.2 million.
Over the two days, Handal was among the most actively traded stocks. A total of 55.19 million shares were traded, which was lower than the 148.33 million shares traded the previous day but higher than its 200-day average volume of 1.1 million shares.
The significant development yesterday was the announcement in a bourse filing that Seaoffshore Capital Sdn Bhd ceased to be a significant shareholder in the group. This came shortly after Deepetro Offshore Brokers Pte Ltd, based in Singapore, emerged as the largest investor with an 11.43% stake.
Handal disclosed that Seaoffshore, controlled by the group’s managing director Sunildeep Singh Dhaliwal and Yamani Hafez Musa, sold around 46.46 million shares on the open market. Despite the divestment, Sunildeep still holds a 6.41% stake in the company.
Handal also announced the departure of non-executive chairman Tengku Baderul Zaman Ibni Sultan Mahmud and executive director Tengku Munawir Islahuddin Tengku Noone Aziz from its board effective yesterday. Their resignations were attributed to “other work commitments”.
In separate filings, Handal revealed Xutiantian as a new executive director, and Yee Soon Jin as an independent non-executive director.
Xutiantian, a China national, is reported to be former admin manager of Fragrant Prosperity PLC, a British Virgin Islands-based special purpose acquisition company (SPAC) and a sales manager at EMG Group of Companies.
In Q1 FY2023, Handal recorded a net profit of RM12.09 million. Notably, the company underwent a transition in its financial year, shifting from the previous date of June 30, 2022 to the new period ending on Dec 31, 2022.
Handal returned to profitability in its first quarter ended March 31 (Q2 FY2023) with a net profit of RM12.06 million and revenue of RM17.5 million.
There are no comparative figures for Q1 FY2022 as the group had changed its financial year end from June 30 to Dec 31.
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