KUALA LUMPUR (Feb 7): Shares of Reneuco Bhd touched as low as 3.5 sen in early trade, as the company has one day left before its Feb 8 deadline to release its latest annual report.

The counter was the top active stock in the morning session, with 204.19 million shares traded at the time of writing, representing 18% of its issued shares and eight times its two-month average volume of 24.96 million shares.

At the time of writing, the counter rebounded slightly to 5.5 sen, still down 2.5 sen from its previous close of eight sen. It has lost 75% of market capitalisation since the start of the year and is currently valued at RM61.7 million.

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Reneuco has until Thursday to submit its annual report for the financial year ended Sept 30, 2023 (FY2023) or face trading suspension. If Reneuco fails to issue the report within six months from Feb 8, de-listing procedures may be commenced against the group.

The company’s accounts have been in focus, following an impairment loss of RM132.53 million in its quarter ended September which brought its quarterly net loss to RM125.05 million. Concurrently, the group also changed its financial year end to September, from June.

At the time, the company told The Edge they were mostly related to engineering, procurement, construction and commissioning (EPCC) contracts for which the relevant project owner had yet to obtain financial close, or pending disbursement from the financiers.

As at end-September, Reneuco had cash of RM14.45 million against total borrowings of RM94.67 million. It had retained losses of RM67.8 million, with net assets valued at 18 sen per share.

Currently, Reneuco’s largest shareholder is Datuk Mustakim Mat Nun, who holds a 3.46% direct and 21.65% indirect stake, largely through OHP Ventures Sdn Bhd. Another substantial shareholder E&E Catalyst Sdn Bhd holds a 7.61% direct stake in Reneuco.

https://www.theedgemarkets.com/node/700153