Big presence in small caps Saturday, 10 January 2015 By: CECILIA KOK

by **Cals** Sun 11 Jan 2015, 11:42

Big presence in small caps

Saturday, 10 January 2015
By: CECILIA KOK

is known as to why the fund was interested in Asia Bioenergy and Ni Hsin. There were speculations, though, that Ni Hsin could undergo a reverse takeover by an oil and gas outfit.
For its first quarter ended Sept 30, 2014, PDZ slipped into a net loss of RM1.7mil on revenue of RM37.9mil, compared with a net profit of RM778,000 on revenue of RM43.6mil in the corresponding period last year.
Higher revenue
BHS Industries fared better, registering an 34% increase in net profit to RM3.9mil on revenue of RM13.3mil for its first quarter ended Sept 30, 2014, compared with a net profit of RM2.9mil on revenue of RM17.1mil in the previous corresponding period.
Sanichi’s first quarter ended Sept 30, 2014, saw the company’s net profit declining to RM589,000 from RM1.8mil in the previous corresponding quarter. Its revenue was also lower at RM4.9mil, compared with RM6.8mil previously.
For Asia Bioenergy, its net loss widened to RM1.3mil for the nine months ended Oct 31, 2014, from RM914,000 previously. This was despite the group registering higher revenue at RM36.1mil, compared with only RM1.4mil previously.
Ni Hsin made a net loss of RM551,000 for its nine months ended Sept 30, 2014, compared with a net profit of RM1.5mil in the previous corresponding period. The group’s revenue was also lower at RM30.1mil, compared with RM40.7mil previously.
Undoubtedly, PMB’s decision to buy into some of these companies has been viewed as quite a risky move by the market. Only time will tell whether the fund will continue to be a substantial shareholder in those companies over the longer term and whether these investments will eventually pay off.