Insider Moves: Matrix Concepts Holdings Bhd, Tex Cycle Technology (M) Bhd, Southern Cable Group Bhd, IJM Corp Bhd, Tenaga Nasional Bhd, Inari Amertron Bhd

This article first appeared in Capital, The Edge Malaysia Weekly on June 24, 2024 - June 30, 2024

Notable filings

During the week of June 10 to 14, one of the notable changes in shareholding at companies listed on Bursa Malaysia occurred at developer Matrix Concepts Holdings Bhd (KL:MATRIX), which saw the Employees Provident Fund (EPF) cease to be a substantial shareholder.

The pension fund disposed of 580,500 shares on June 14, reducing its stake to below the 5% threshold for disclosure — just a few days after it surfaced as a substantial shareholder of Matrix on June 5, having acquired 248,200 shares.

EPF has been actively trading in Matrix shares with up to a 9.07% stake a year ago. The stock closed at a multi-year high of RM1.83 on April 2. It has since largely remained in a constant range, closing at RM1.81 last Wednesday for a market capitalisation of RM2.26 billion.

At Tex Cycle Technology (M) Bhd (KL:TEXCYCL), Enrich Signature Sdn Bhd — the privately held vehicle of Chiau Haw Yew and Chiau Haw Loon — acquired 33.58 million shares, or 13.25% equity interest, and emerged as a substantial shareholder of the waste management and renewable energy outfit.

There have been a slew of changes in shareholding at Tex Cycle. In early May, Frazel Group Sdn Bhd — which is controlled by Datuk Keh Chuan Seng, the executive chairman of the company, and Cheong Kai Meng — emerged as a substantial shareholder in Tex Cycle following the purchase of 67 million shares, or a 26.44% stake.

This came after Lee Hai Peng, an executive director of Tex Cycle, acquired 13 million shares or 5.13% equity interest at end-April.

Haw Yew was appointed as an executive director of Tex Cycle in early January this year, while Keh came on board in May last year, a few days after Lee’s appointment.

Tex Cycle ended trading last Wednesday at RM1.30 for a market value of RM328.6 million.

During the week in review, privately held Semangat Handal Sdn Bhd hived off 16 million shares in Southern Cable Group Bhd (KL:SCGBHD), trimming its stake to 112.03 million shares, or 13.81% equity interest.

Semangat Handal is controlled by non-independent, non-executive director Fawiza Faiz, who has been on the board of the cable and wire manufacturer since July last year. Fawiza is the niece of Tung Eng Hai, the managing director of Southern Cable. Tung has a 36% stake in Southern Cable, held with his partner Wong Meng Kee who is an executive director of the company.

Southern Cable’s stock reached RM1.04 last Tuesday, its highest level since its listing in mid-October 2020. Last Wednesday, Southern Cable finished at 95.5 sen, with a market value of RM774.7 million.

Meanwhile, the EPF trimmed its stake in construction giant IJM Corp Bhd (KL:IJM), selling 10.13 million shares and reducing its shareholding to 17.31%, or 607.06 million shares, compared with 17.75% three months ago.

IJM’s share price has surged nearly 60% so far this year to close at RM2.95 last Wednesday, which valued the group at RM10.34 billion.

Notable movements

Tenaga Nasional Bhd (KL:TENAGA) hit a record high of RM14.28 per share in intraday trading last Tuesday, and has largely held up, finishing last Wednesday at RM13.86 for a market capitalisation of RM80.21 billion.

During this period of strength, many local funds were actively trading the utility giant’s shares, but they largely took profit from their gains.

The EPF, for one, sold 28.38 million shares, reducing its stake to 1.02 billion shares or 17.56%, while Amanah Saham Bumiputera offloaded 1.8 million shares, paring its shareholding to 537.4 million shares or 9.29%.  Pension fund Kumpulan Wang Persaraan (Diperbadankan), or KWAP, trimmed its shareholding in Tenaga to 7.29% or 421.65 million shares, after divesting 1.04 million shares.

Tenaga’s stock has been supported by a number of factors, largely on rising electricity demand and the data centre play. The recently set up Energy Exchange Malaysia, which is slated to enable the sale of green electricity to Singapore, is also likely to benefit Tenaga on the back of considerably higher electricity prices.

Local funds were also net sellers of Inari Amertron Bhd (KL:INARI) during the week in review with the EPF disposing of 17.56 million shares, thus reducing its shareholding to 9.98%, or 376.1 million shares. KWAP offloaded one million shares in the semiconductor player, trimming its stake to 9.51%, or 358.51 million shares.

Having gained more than 25% year to date, Inari Amertron’s share price hit RM3.89 on June 13, its highest level since early January 2022. The stock finished last Wednesday at RM3.72 for a market value of RM14.01 billion.

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