KUALA LUMPUR (Aug 12): The Employees Provident Fund (EPF) has emerged as a substantial shareholder in SMRT Holdings Bhd (KL:SMRT) for the first time, after raising its direct stake in the technology company to 5.017% comprising 22.73 million shares.

This came as the EPF, via Citigroup Nominees (Tempatan) Sdn Bhd, acquired 250,000 shares of SMRT on Aug 7, the group’s filing on Monday showed.

The transaction price was not disclosed in the filing. For reference, SMRT's share price closed at RM1.03 last Wednesday.

According to SMRT’s latest annual report, the EPF was not featured in its top 30 shareholders list as at Sept 29, 2023.

Special Flagship Holdings Sdn Bhd, which is controlled by SMRT's former executive chairman and current non-independent non-executive director Tan Sri Dr R Palan, is currently the group's largest shareholder, holding a 15.8% stake, according to Bloomberg. Dr Palan himself also holds a direct stake of 13.4% in the group.

Other substantial shareholders in SMRT include the special purpose vehicle established under the Ministry of Finance, Urusharta Jamaah Sdn Bhd, with a 7.65% stake, and global investment company abrdn plc with a 6.33% stake.

SMRT underwent a reorganisation over the past year as it sought to become a pure technology player focusing on internet of things (IoT) services, which serves various clientele industries including utilities, banking and finance, gaming and entertainment, as well as retail companies.

In May 2023, SMRT exited the education segment that has not been a strong contributor to the group's earnings as it completed the disposal of its entire stake in subsidiary SMR Education Sdn Bhd, which was the 42% controlling entity of Cyberjaya Education Group Bhd (KL:CYBERE) (formerly known as Minda Global Bhd), for RM49.55 million.

SMRT also acquired the remaining 36% stake not already owned by the group in its primary IoT subsidiary N'osairis Technology Solutions Sdn Bhd from Permata Kirana Sdn Bhd for RM72 million cash in the same month, effectively having full control of the company.

For its third financial quarter ended March 31, 2024, SMRT posted a net profit of RM6.86 million on revenue of RM16.06 million. Net profit for the first nine months of the financial year came up to RM20.47 million on the back of RM51.23 million in revenue. There was no corresponding quarter or period to be compared with as the group recently changed its financial year end.

SMRT was one of the tech stocks that were affected by the widespread suspensions in intraday short selling by Bursa Malaysia last week.

On Monday, the counter closed up two sen or 1.77% at RM1.15, giving the group a market capitalisation of RM523.53 million. Year to date, the stock has risen by 11 sen or 10.58%.