CN Asia’s Shares Have Fallen as Much as 23% in Early Trade

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CN Asia Corp Bhd’s shares, a manufacturer of steel storage tanks, plummeted as much as 23% to an intraday low of 54.5 sen in early trade on Wednesday, ranking among the top losers.

At noon, the stock was trading at 56.5 sen, down 14 sen or 19.86 percent. 27.62 million shares were traded on the counter. It has been trading between 21 sen and RM1 for the last 52 weeks.

At the present valuation, the company is worth RM92.92 million.

On September 21, CN Asia revealed that their net loss narrowed to RM652,000 in the second quarter ended June 30, 2021 (2QFY21) from RM716,000 in the preceding quarter, despite revenue declining 13% to RM2.45 million from RM2.79 million in the preceding quarter. The company attributed the lower revenue to a slowdown in business and reduced activity on current contracts as a result of the Movement Control Order’s reimplementation in May 2021, which harmed its production progress.

However, on a year-on-year basis, the company’s net loss increased from RM449,000 in 2QFY20, owing mostly to an increase in raw material prices and a decline in interest income during the quarter under review.

The group’s net loss narrowed to RM1.37 million in the first half of 2021 from RM2.99 million a year earlier as sales climbed 14.8% to RM5.24 million from RM4.56 million.

CN Asia anticipates that the group would continue to face problems as a result of the global economic uncertainties created by the Covid-19 outbreak, as well as currency instability and growing raw material prices. It cautioned that its overall performance for the fiscal year ending December 31, 2021 will continue to be difficult.

Published by Zack Baharum

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