CEO Morning Brief

Epicon Says Shareholder Assisting MACC Probe as Shares Drop Over 38%

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Publish date: Thu, 30 May 2024, 10:20 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (May 29): Shares in Epicon Bhd (KL:EPICON), formerly known as Konsortium Transnasional Bhd, plummeted as much as 38.75% to 24.5 sen on Wednesday, prompting Bursa Malaysia to issue it an unusual market activity (UMA) query.

In its reply to the stock exchange, Epicon said it has been notified by its major shareholder that one of its members is currently assisting a Malaysia Anti-Corruption Commission (MACC) probe in his own personal capacity.

“The company wishes to highlight that the investigation is not related to the company and has no impact on the business and affairs of the group,” said Epicon.

Epicon’s largest shareholder is Doh Properties Sdn Bhd with an 11.26% stake, according to the group’s annual report.

Data from the Companies Commission Malaysia showed that Datuk Doh Jee Ming and Datuk Doh Tee Leong each own a 45% stake in Doh Properties, while Datuk Doh Neng Chiong and Datin Lee Hong King each own a 5% stake.

Tee Leong also owns a 1.72% direct stake in Epicon.

Jee Ming is managing director at Lagenda Properties Bhd (KL:LAGENDA), controlling an over 50% stake in the real estate developer together with Tee Leong via their private vehicle Lagenda Land Sdn Bhd.

Earlier on Tuesday, Lagenda disclosed that one of its senior personnel had been remanded by the MACC in an investigation into the subdivision of Malay reserve land in Manjung, Perak.

At market close, Epicon’s shares pared losses to end at 31.5 sen, still down 8.5 sen or 21.25%, valuing the construction firm and bus operator at RM187.36 million. The drop in share price placed the counter among Bursa Malaysia's top losers by percentage.

The counter saw 138.59 million shares traded, 16.3 times its three-month average volume of 8.48 million shares, also seeing it slot among the bourse's top active list.

Stocks under RM1.00 will hit limit-down with a decline of 30 sen, making the lower limit for Epicon at 10 sen.

Earlier this month, Epicon’s wholly-owned unit Transnational Builder Sdn Bhd bagged a RM50 million sub-construction contract for structural reinforced concrete works for a high-rise residential development in Mukim Batu, Kuala Lumpur.

For the first quarter ended March 31, 2024 (1QFY2024), Epicon’s net profit doubled to RM3.57 million from RM1.75 million a year earlier, mainly due to an increase in construction projects and improved construction progress.

Quarterly revenue surged 163.92% to RM56.21 million, versus RM21.3 million previously.

Source: TheEdge - 30 May 2024

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