HCK Capital records a striking 3-year high


Shares of HCK Capital Group Bhd recorded the biggest jump in over three years after a 26% increase in its share price yesterday.

Its shares hit limit-up, surging as much as 30 sen to a high of RM1.25 and thus triggered regulator Bursa Malaysia Bhd to issue an unusual market activity notice.

HCK Capital, which is involved in the property, food, technology and media industries, was required to disclose any corporate development, rumour or other possible explanation that could have contributed to the sharp rise in its share price.

Last Monday, the group announced that a total of 421.17 million subdivided shares were listed and quoted on Bursa Malaysia, marking the completion of its one-to-five share split exercise.

It is also undertaking a renounceable rights issue of 210.59 million warrants on the basis of one warrant for every two split shares held.

It has set the issue price of the warrants at five sen each and exercise price at 96 sen per warrant. HCK Capital reported a widened net loss of RM1.1 million for the first-quarter ended March 31, 2017, against RM506,000 in the same period a year ago.

According to Bloomberg data, the stock rose 19% in the past month and in the last session, 28% of the company’s shares that were traded were at the ask price and 36% were at the bid.

HCK Capital trades at 270.6 times trailing 12-month earnings per share.

The stock returned 91% so far this year and a gain of 106% in the past 52 weeks.

Tan Sri Clement Hii Chii Kok is currently HCK Capital’s largest shareholder with 63% controlling stake.

Hii is best known as the founder and group MD of education group SEG International Bhd, in which he holds a 32% stake.