KUALA LUMPUR (Jan 22): Jentayu Sustainables Bhd, whose share price plummeted 58% over the last week, asserted that the recent selling wave does not accurately reflect the company's underlying fundamentals.

In a statement, the green energy solutions provider acknowledged the challenging week in the stock market, witnessing a significant reduction in share price over the past few trading days.

However, the group believes these price fluctuations are short-term and do not represent its true fundamentals.

"According to various press reports, our recent stock price fluctuations could be due to an unwinding of positions. This unwinding could have triggered forced selling of Jentayu shares.

"We give our investors and shareholders every assurance that these developments neither affect nor reflect Jentayu's fundamentals, which continue to grow from strength to strength, and will not deter us from being on track to achieving our goals for this year as planned," it said.

The group highlighted that it is well on its way to achieving sustainable financial performance with the injection of the run-of-river hydropower plant Telekosang Hydro into Jentayu, poised to be completed by June.

"We are also on track as planned to execute the power purchase agreement (PPA) for our RM2.8 billion, 170MW run-of-river hydropower plant Project Oriole by mid-2024.

"Just today, Jentayu had an encouraging meeting with the Energy Commission of Sabah (ECOS), bringing us yet another step closer to signing our PPA for Project Oriole," it said.

The group stressed that these developments have positioned it in a much better financial and commercial state than ever before, making it very optimistic heading into 2024, as years of hard work are set to bear fruit in the first half of this year.

For the financial year ended June 30, 2023 (FY2023), the company posted a net loss of RM5.06 million against a net profit of RM29.18 million the year prior, which was boosted by divestment gain of RM65.6 million.

Its annual revenue contracted to RM42.6 million in FY2023 compared with RM82.84 million the year before.

Jentayu, formerly known as Ipmuda Bhd, was one of the counters struck by the recent selling pressure, hitting limit down for three days over the past week.

Prior to the sell-off, Jentayu’s share price climbed 200% over the past two years from 43.5 sen at end-2021 to a peak of RM1.32 early this month.

Jentayu gained 4.5 sen or 9% to close at 54.5 sen on Monday, giving the group a market capitalisation of RM239.23 million.