Trading in Anzo Holdings Bhd’s securities has been suspended at the request of the company with effect from 4.22 pm today, 24 June 2020, pending an announcement.
NO DETAILS were provided by Anzo on the suspension.
However, sources with knowledge on the matter said that the announcement could be related to a major deal that is taking place as soon as this week, and it could be a game-changer for Anzo.
Anzo has been actively looking to diversify its business to improve its revenue stream and earnings, despite the Covid-19 pandemic.
In a recent filing with Bursa Malaysia, Anzo said it was revising the company’s business plans to mitigate any potential negative impact arising from Covid-19. The company posted a revenue of RM8.37 million in the third quarter ended April 30 2020, almost six times more than the preceding year corresponding quarter. This was mainly due to the contribution made from the trading section of the construction division, which provided RM7.5 million (2019: nil) turnover during the quarter. The timber division contributed only RM900,000 (2019: RM1.5 million) turnover during the period.
Anzo said that in line with the improved operating results, it had achieved a minor pre-tax loss of RM2,000 compared to a pre-tax loss of RM1.03 million in the previous year’s corresponding quarter.
For the year to date, and as a result of the improved trading business, the company’s revenue and gross profit increased to RM15.51 million and RM1.38 million respectively. As a result, its pre-tax loss reduced by almost half, from RM2.7 million in 2019 to RM1.39 million in 2020.
Sources believe that Anzo may post better results in the fourth quarter ending July 31, 2020. The stock closed 2 sen or 15.38 per cent higher today at 15 sen, raising its market capitalisation to RM132.78 million.
It was the SEVENTH highest traded stock volume-wise on the local stock exchange. A total of 90.1 million shares were traded before the suspension. The closing price of 15 sen is also Anzo’s highest traded price over the last three years.
In April 2017, the stock had been trading around 40 to 50 sen range. In a filing with Bursa Malaysia on June 22, Anzo said that some foreign investors have acquired shares in the company. The company was replying to an enquiry from Bursa Malaysia following a news report.