Hot Stock MUI jumps 19.57% in active trade on possible disposal of assets

by **Cals** Thu 27 Nov 2014, 02:09

Hot Stock
MUI jumps 19.57% in active trade on possible disposal of assets

KUALA LUMPUR (Nov 25): Shares of Malayan United Industries Bhd (MUI) ([You must be registered and logged in to see this image.] Financial Dashboard) rose in active trade on Wednesday after it announced to the stock exchange a day earlier that it was currently engaged in “serious discussions” with a potential party, to explore the possibilities of disposing certain substantial assets, in order to realise their value.
At 9.24am, MUI jumped 19.57% or 4.5 sen to 27.5 sen with 41.10 million shares traded.
In a filing with Bursa Malaysia on Nov 25, MUI had said it would make full disclosure of the transaction, once the discussions are completed and an agreement has been entered into.
“The company wishes to remind its shareholders that there is no certainty as to the outcome of the discussions,” said MUI, in which tycoon Tan Sri Khoo Kay Peng controls 47.67% shareholding.
The asset-ladden group also released its third quarter earnings this evening. MUI reported a net loss of RM2.31 million in the third quarter ended Sept 30 (3Q14), compared to a net profit of RM15.9 million in the previous corresponding quarter.
Revenue for the quarter fell 7.5% to RM150.76 million, from RM163 million in 3Q13.
MUI noted the net profit in the previous corresponding period being boosted by gains on disposal of a leasehold property and other investments of RM21.5 million and RM346,000 respectively, had resulted in a positive RM20.5 million recorded under the group's “exceptional items” in its profit and loss statement, thus boosting its bottom line.
However, in 3Q14, MUI recorded exceptional loss of RM7 million, due to a RM3.8 million foreign exchange loss and RM3.2 million loss in provisions for legal claim.
Meanwhile, finance costs accorded in the quarter stood at RM12.02 million, similar to its operating profit of RM12.02 million.
For the nine months ended Sept 30, 2014, MUI reported a net loss of RM3.1 million, compared to a net profit of RM17.3 million in the previous corresponding period. Revenue came in lower at RM441.2 million, compared with RM470.2 million.
MUI has operating segments in retailing, hotels, food and confectionery, financial services and property.