Low-profile Sunzen Biotech Bhd has recently come under the radar of investors with its share price increasing as much as 18% since the beginning of the year to 33 sen on March 18.
At last look, some profit-taking had pushed it down to 30.5 sen.
The company which makes animal health products recently proposed free warrants issue of up to 49.8 million free warrants on the basis of one warrant for every three existing shares of 10 sen each.
Shareholders gave their approval for this at an EGM yesterday.
The ex-date for this is April 9 and entitlement date is Apr 11.
Sunzen’s earnings, albeit relatively small have been growing steadily.
For the financial year ended Dec 31, the company reported a net profit of RM3.59mil against a net profit of RM1.42mil for the same period a year ago.
Revenue was also higher at RM37.3mil compared with RM32.8mil earlier.
In its most recent Annual Report, Sunzen said it strongly believed that the future of its business was to go global as the Malaysian market was relatively small for “real” growth potential.
The company is eyeing regions like the Middle East and Africa and has since rectified its issue in China, where its dealers had earlier marketed its products at exorbitant prices, causing low acceptances of its products there – By Yvonne Tan
The comments above do not represent a recommendation to buy or sell.
by yvonne tan, thestar.com.my
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