CEO Morning Brief

Trading of Heng Huat’s Securities Halted Pending Material Announcement

Publish date: Thu, 29 Sep 2022, 08:40 AM
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TheEdge CEO Morning Brief
Trading of Heng Huat’s securities halted pending material announcement

KUALA LUMPUR (Sept 28): Trading in the shares and warrants of Heng Huat Resources Group Bhd will be halted from 9am to 5pm on Thursday (Sept 29), pending the release of a material announcement.

This is according to the group’s bourse filing on Wednesday (Sept 28).

Heng Huat said Bursa Malaysia Securities had approved the company'’s request for trading suspension.

“The request for suspension is made under subparagraph 3.1(b) of Guidance Note 12 on Requests for Suspension of the ACE Market Listing Requirements of Bursa Securities,” it added.

The company, which is listed on the ACE Market, is involved in the manufacturing and trading of biomass material and value-added products, focusing on oil palm empty fruit bunch fibre, coconut fibre and value-added products.

It is also a manufacturer and distributor of our own brands of mattresses and bedding accessories, and has ventured into furniture and property segments.

After more than three years of losses, Heng Huat has posted a turnaround with five consecutive quarters of profit up until the first quarter ended June 30, 2023 (1QFY23).

The quarter saw revenue rising 55% quarter-on-quarter to RM47.49 million from RM30.5 million, on higher sales across both business segments and a recently-acquired furniture business.

However net profit fell nearly 70% to RM2.31 million, from RM7.52 million, due to one-off expenses relating to acquisition of property for its property segment in the quarter under review.

As at end-June, the group had total borrowings of RM31.8 million against a cash sum of RM40.62 million. Accumulated losses stood at RM2.4 million, down from RM4.72 million a quarter before.

Shares of Heng Huat closed 3.8%, or one and a half sen lower at 38 sen on Wednesday, valuing the group at RM283.6 million.

Source: TheEdge - 29 Sep 2022

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