KUALA LUMPUR (Sept 2): One of the unit trust funds managed by Kenanga Investors Bhd has emerged as a substantial shareholder in furniture maker Sern Kou Resources Bhd (KL:SERNKOU).

RHB Trustees Bhd, on behalf of Kenanga Islamic Absolute Return Fund, acquired 120.38 million shares that represent an 11.17% stake in Sern Kou last Friday (Aug 28), according to Sern Kou's bourse filing on Wednesday.

"Kenanga Investor Bhd — the investment manager of Kenanga Islamic Absolute Return Fund — acquired the shares as part of portfolio investment," the filing stated.

The value of the transaction was not disclosed, and neither were details of the seller.

Based on Sern Kou’s closing price of 79 sen on the transaction date, the stake is estimated to be valued at RM95.1 million.

Sern Kou’s largest shareholder currently is group managing director Low Peng Sian @ Chua Peng Sian, who holds a direct 22.9% stake, along with an indirect stake of 0.93% through his vehicle Genius Success Capital Sdn Bhd.

Besides the manufacturing and trading of furniture, Sern Kou is involved in the processing and trading of rubber wood, timber logs and related products.

Sern Kou shares closed five sen, or 5.9% lower at 80 sen — little changed from a year ago — giving the group a market capitalisation of RM862.5 million.

Sern Kou was profitable in two of the last five financial years. From an annual net profit of RM9.2 million in the financial year ended June 30, 2022 (FY2022), which saw a sharp drop to RM1.3 million in FY2023, the group fell into the red in FY2024 with a net loss of RM13.9 million. Though net loss narrowed to RM5.9 million in FY2025, it widened to RM22.97 million in FY2026.