KUALA LUMPUR (Jan 16): Intra-day short-selling of Sarawak Consolidated Industries Bhd (SCIB) shares has been suspended, Bursa Securities said, as the fell 29.83% or 35.5 sen to close at limit down on Tuesday.

SCIB shares fell 35.5 sen to close down 83.5 sen, from RM1.19 sen the day before — its highest in three months. Some 230.2 million shares exchanged hands in the two-hour period, more than four times its two-month average volume of 57.32 million shares.

The sell-off ended a rally that lasted a little over three months since October 2023, which saw the counter rise as much as 161% in just three months to its Jan 15 peak of RM1.19, its highest since June 2021.

The first rebound rally in the counter occured in April-July 2023, where it re-rated from around 12 sen to a peak of 50 sen. Over the past one year, SCIB shares have risen by 475%, even after including Tuesday's (Jan 16) pullback.

The group, which undertook infrastructure projects in Sarawak as well as Peninsular Malaysia, returned to the black in its first quarter ended Sept 30, 2023 (1QFY2024), following a period of losses which dragged the company into the red for three financial years in FY2021-FY2023.

Interest returned to the counter after the departure of Serba Dinamik Holdings Bhd co-founder Datuk Mohd Karim Abdullah as a shareholder in the middle of last year.

At the time, SCIB also saw a slew of boardroom changes, including the appointment of Abang Abdillah Izzarim Abang Abdul Rahman Zohari, the son of Sarawak Premier Tan Sri Abang Johari Tun Openg, as executive chairman.

However, Abdillah Izzarim retired just six months later on Dec 11, where he was succeeded by Datuk Seri Zaini Jass, alongside other boardroom changes announced on the same day.

In 1QFY2024, SCIB made a net profit of RM926,000 or 0.14 sen per share, from net loss of RM871,000 or 0.15 sen per share a year ago. Revenue rose by one third to RM39.4 million, from RM30.33 million.

At end-September 2023, SCIB had cash of RM14.46 million, against total borrowings of RM40.37 million, for net gearing of 0.18 times. Retained losses stood at RM83.09 million.

SCIB does not have any surfacing controlling or substantial shareholder, following Abdul Karim's exit in June last year, where he disposed of his entire 139.67 million shares or 21.81% stake due to forced-selling. 

At 83.5 sen, SCIB had a market capitalisation of RM534.6 million.