MTRONIC 0043 Share Price

The Group recorded a loss before tax of RM488k compared to a profit of RM571k in the preceding quarter due to higher costs incurred for infrastructure projects and a lower revenue from service and maintenance division as a result of lower retrofit job secured during the period, Hence, current quarter also recorded a lower margin compared to the preceding quarter.

Metronic Global Bhd plans to raise up to RM33.94 million – almost a quarter of its current market capitalisation of RM141.52 million – through a private placement of up to 373.74 million shares or 30% of its issued shares, mainly to fund its existing and future engineering projects. The issue price of the new shares and the third-party investors will be decided at a later date, the company said. The bulk of the proceeds, or RM32.65 million, will be used for existing and future engineering projects. Its engineering project order book stood at RM112.82 million at the latest practicable date, according to the filing to Bursa Malaysia.

Metronic Global Bhd’s share price has fallen a total of 54% between Oct 13 and 26, from 11 sen to five sen. The company’s share price had risen substantially since April 28, when it was trading at two sen, to hit a high of 11 sen on Oct 13. Substantial shareholder Cita Realiti Sdn Bhd disposed of 85.5 million shares in the company, paring its stake to 11%. In September, Metronic Global announced that it had established a new subsidiary, Metronic Medicare Sdn Bhd, whose proposed principal activities are distributing medical-related products such as whole body disinfectant systems, Covid-19 swab test kits, Covid-19 first aid boxes and AI temperature measure systems.

Property tycoon Tan Sri Lee Kim Yew ceased to be a substantial shareholder of Metronic Global Bhd on Sept 24 after disposing of 123.51 million directly held shares in the loss-making company. MNC Wireless Bhd had acquired 10.3 million Metronic shares on the open market on Sept 21, taking its direct interest in the company to 5%. Cita Realiti Sdn Bhd bought a total of 16.3 million shares on Sept 22 and 23, taking its direct interest to 14.64%. Datuk Seri Pang Chow Huat bought 17.85 million shares on Sept 17, taking his direct stake to 7.77%. Sanichi Technology Bhd acquired 92.35 million shares on Sept 21, taking its direct interest to 10.2%.

Another notable active was Metronic Global Bhd, with 812.5 million shares exchanged – about 65% of its share base. On Thursday, the engineering company announced that Tan Sri Lee Kim Yew had ceased to be its substantial shareholder after the property tycoon sold 123.5 million shares that were equivalent to a 9.9% stake in the company. This came after Lee sold 180 million shares on Monday. On the other hand, three companies increased their stakes in Metronic, namely M N C Wireless Bhd (acquired 10.3 million shares), Cita Realiti Sdn Bhd (acquired 16.3 million shares) and Sanichi Technology Bhd (acquired 92.35 million shares).

In the current quarter under review, the Group recorded a loss before tax of RM3.2 million as opposed to a loss before tax of RM1.9 milllion in the preceding quarter. The higher loss reported for the current quarter due to reversal for impairment recorded whereby immediate preceding quarter recorded a provision for impairment of RM1.3 million.