KUALA LUMPUR (March 19): Shares of Ge-Shen Corp Bhd fell on Tuesday, after the contract manufacturer said it was not aware of any reason that could explain the recent jump in its stock prices.

Ge-Shen dropped as much as 6.3% to an intraday low of RM3.74 on Tuesday, after hitting an all-time high on Monday (March 18). The counter pared its losses to close at RM3.79 – down 5.01% or 20 sen from its previous close – giving it a market value of RM463.23 million.

In an announcement to Bursa Malaysia, the plastic injection moulding and metal stamping company said it was not aware of any rumour, report, or any other possible reason that could be fuelling the surge in its share price recently.

Bursa issued an unusual market activity query to Ge-Shen on Monday, after its share price surged to an intraday high of RM4.03. The counter then closed at RM3.99 on Monday, with a market value of RM490 million.

The company also announced, on the same day, its acquisition of a 60% stake in two entities, Amity Research & Development Sdn Bhd and Amity Technical Services & Consultancy (M) Sdn Bhd, for RM13.5 million in cash.

The move aims to bolster its presence in the electrical-and-electronics sector, which will expand its revenue streams, Ge-Shen said. The acquisition is expected to be completed in the third quarter of 2024.

This announcement follows the group’s recent agreement made two weeks ago, to purchase a 40% stake in smaller rival Local Assembly Sdn Bhd for RM48 million in cash.

Ge-Shen’s net profit had declined by 16.9% to RM8.44 million in the financial year ended Dec 31, 2023 (FY2023), from RM10.16 million a year earlier, on higher effective tax rate.

Its revenue for FY2023 stood at RM256.31 million, 1.1% higher than the RM253.61 million in FY2022, thanks to contribution from its 60%-owned unit Kibaru Manufacturing Sdn Bhd.