KUALA LUMPUR: Shares in Sarawak Consolidated Industries Bhd (SCIB) hit limit up yesterday, when the stock rose as much as 86%, or 30 sen, to 65 sen — its highest since February 2008.

The building materials manufacturer, which saw 5.62 million shares done, was the top gainer across the exchange.

During the day, SCIB shares were traded at a low of 40 sen at 9.36am before reaching a high of 65 sen at 12.07pm. The stock closed at 65 sen with a market capitalisation of RM47.83 million.

SCIB has gained 69% so far this year, significantly outperforming the FBM KLCI’s 3% gain. Substantial gains in SCIB shares yesterday prompted queries by Bursa Malaysia on the stock’s unusual movement.  

In response to the regulator’s queries, SCIB said it is not aware of any corporate developments which might have triggered the unusual movement in the stock price.

SCIB’s financials have improved significantly. Net profit in 1QFY11 ended March 31 rose substantially to RM1.25 million or 1.69 sen a share from RM49,000 or 0.07 sen  a share a year earlier. Revenue was up 11% to RM11.5 million from RM10.37 million. The company said its bottom line had improved during the quarter as it reaped better profit margins from the sale of its industrialised building system (IBS) components, according to notes accompanying its latest reported financials.

SCIB expects to benefit from its leadership position in pre-cast concrete products and IBS components in Sarawak in anticipation of the rollout of major projects under the 10th Malaysia Plan, and the Sarawak Corridor of Renewable Energy.

As at March 31 this year, SCIB had RM4 million cash against debts of RM15.1 million, translating into net borrowings of RM11.1 million.

Hydrostar Sdn Bhd is the single largest shareholder in SCIB with a 17.99% stake, followed by Pacific Unit Sdn Bhd  (12.61%) and Sarawak Economic Development Corp (8.81%).


This article appeared in The Edge Financial Daily, July 28, 2011.