IN attempts to escape from a downward spiral of collecting losses, the Malayan United Industries Bhd (MUI) sold its entire 69.12% stake in Pan Malaysia Holdings Bhd (PM Holdings).
From a Jan 17 – 23, 2015 issue of FocusM, it was reported that PM Holdings’ net loss rose to RM1.94 mil for the nine months ended Sept 30, 2014 from its previous RM874,000 in the year before.
Its revenue also declined to RM6.54 mil from RM7.95 mil previously, which was significantly contributed from lower occupancy rate at its hotels as PM Holdings’ business is mainly involved in hotels and stockbroking.
But it seems that the group’s luck is finally starting to turn around, although it came with a few tumbles along the way.
On Mar 14, 2017, The Edge reported that PM Holdings was issued an unusual market activity (UMA) query by Bursa Malaysia regarding a sudden 23.33% spike in its share price to 18.5 sen on the morning of the report.
Apart from that, a Simply Wall St article dated Feb 17, 2020 reported that the group’s share price gained about 50% in the previous three months, despite ‘the fact that the returns over the last half decade have been stomach churning’.
However, it was thought that the increase could signal the group’s business improving, but its rate of sustainability would depend on the fundamental business performance.
At the time, PM Holdings wasn’t profitable, but it wasn’t doing too bad.
“Over half a decade, PM Holdings reduced its trailing twelve month revenue by 2.0% for each year. While far from catastrophic, that is still not good. If a business loses money, you want it to grow, so no surprises that the share price has dropped 22% each year in that time,” stated the report.
Meanwhile, another article pointed out that PM Holding’s debt stood at RM14.4 mil as of Mar 2020, which decreased from the previous year’s RM15.5 mil.
“Zooming in on the latest balance sheet data, we can see that PM Holdings had liabilities of RM6.21 mil due within 12 months and liabilities of RM14.4 mil due beyond that,” the article reported.
“Offsetting this, it had RM225,000 in cash and RM943,000 in receivables that were due within 12 months. So, its liabilities outweigh the sum of its cash and (near-term) receivables by RM19.5 mil,” it added.
At the time, PM Holdings had a market capitalisation of RM222.9 mil.
In its fourth quarter ended June 30, 2020 (4Q20), PM Holdings recorded a staggering decrease in revenue to RM186 mil from its previous RM1.8 bil in 4Q19. It also recorded a net loss of -RM1.2 bil from the previous -RM650 mil.
However, a more recent article pointed out that the group experienced extremely good returns last year as its share price shot up 292%, despite the group had a 19% decrease in share price in August 2020.
Of course, the actual prospects of the group remains to be determined, but as of 2.50pm today, PM Holdings’ share price increased 4% to 13 sen with a market capitalisation of RM120 mil. – Oct 1, 2020
