Bursa Malaysia Securities on Monday again freezed the lower limit of the share price for Rapid Synergy Bhd and YNH Property Bhd following a sharp fall in their stock prices, setting the lower limit share price for Rapid Synergy at RM1.95 and YNH Property at 55.5 sen.

KUALA LUMPUR (Jan 22): Bursa Malaysia Securities on Monday again freezed the lower limit of the share price for Rapid Synergy Bhd and YNH Property Bhd following a sharp fall in both companies' prices.

Bursa Securities previously freezed the lower limit for both Rapid Synergy and YNH Property last Wednesday.

The freeze was imposed because the counters were traded at static limit down prices for two consecutive days, the exchange said in a filing.

Accordingly, Bursa Securities has set the lower limit share price for Rapid Synergy at RM1.95 and YNH Property at 55.5 sen.

Rapid Synergy was the biggest loser on the exchange on Monday. The stock had opened limit down at RM1.95, down 83 sen or 29.86% from its previous close.

The stock stayed at RM1.95 throughout the day, giving the company a market capitalisation of RM208 million. Trading volume stood at 550,200 shares, three times higher than the 175,700 shares traded last Friday.

YNH Property also opened limit down at 55.5 sen, down 30 sen or 35.1% from its previous close of 85.5 sen. The stock rose to as high as 65 sen before closing back at 55.5 sen, for a market capitalisation of RM294 million.

YNH Property was the third most active stock with a trading volume of 233.77 million shares, which is about 44% of its issued shares capital.

Both stocks have succumbed to heavy selling pressure since the beginning of the year. Year-to-date, Rapid Synergy has plunged 93% or RM26.53, while YNH Property has fallen 87% or RM3.695.

Cumulatively, the severe sell-down has seen RM4.77 billion in market capitalisation erased.

Both Rapid Synergy and YNH Property share a common shareholder in Datuk Dr Yu Kuan Chon, who held a 32.58% stake in YNH Property and 22.8% stake in Rapid Synergy.

Previously, both Rapid Synergy and YNH Property revealed that they were considering proposals to sell certain landed properties, in response to an unusual market activity (UMA) query from Bursa Malaysia.

Rapid Synergy’s net profit has been trending down over the past three years. It made a net profit of RM1.74 million for the 18 months ended June 30, 2023 (FY2023), much lower than the net profit of RM3.46 million for FY2021 and RM5.2 million for FY2020 despite the expanded financial period due to the group's change in financial year-end to June 30 from Dec 31. The company kicked off FY2024 with a net profit of RM13.85 million for the three months ended Sept 30, 2023, boosted by a gain from the disposal of investment properties.

Similarly, YNH Property has changed its financial year-end from Dec 31 to June 30. The loss-making company posted a net loss of RM2.79 million for FY2021, which swelled to RM14.59 million in FY2022 and further to RM18.23 million in the 18-months ended June 30, 2023 (FY2023). For the first quarter of FY2024, YNH Property remained in the red with its net loss for the July-September period widening to RM10.22 million from RM2.22 million a year earlier, despite revenue rising 19% to RM62.74 million from RM52.84 million. The quarterly performance was dragged down by higher cost of sales, expenses and lower other income.

Last week, YNH Property provided two oversights related to transactions undertaken and terminated as recently as April 2022 and in 2016 that it had failed to disclose to public at the material time.

The first oversight relates to a sale and purchase agreement entered into between YNH’s unit Kar Sin Bhd (KSB) and Great Wall Park Sdn Bhd (GWP) for a piece of land located in Desa Seri Hartamas, on April 18, 2022.

The second oversight pertains to a turnkey construction agreement entered between KSB and GWP for the purpose of developing the Desa Seri Hartamas land in June 2016. A security deposit of RM41.5 million was paid. Subsequent variations to the agreement resulted in the payment of a total of RM239.5 million as security deposit by KSB to GWP.