KUALA LUMPUR (Dec 26): Bright Packaging Industry Bhd shares jumped to their highest in more than 10 years on Wednesday on news that the aluminium-foil packaging material manufacturer may see a change in its board and management.
Bright Packaging rose as much as seven sen or 4% to RM1.90, the highest since May 2002, before settling at RM1.88 at 12.30pm with some 240,000 shares done. The stock price has more than tripled (211%) this year, significantly outperforming the FBM KLCI's 9% gain.
On Monday, Bright Packaging told the exchange that four substantial shareholders with a collective stake of 31.2 % in the firm had requested for an extraordinary general meeting (EGM) to remove existing directors and appoint new ones in the company.
Syed Ali Abbas Alhabshee, Ang Lay Chieng, Tee Wee Keat and Lye Jun Fei who are seeking board seats at Bright Packaging, intend to remove existing directors - Wong See Yaw, Wong Siew Yoong, and Yeap Cheng Chuan, according to the EGM requisition notice.
The company's annual report shows that Siew Yoong is the sister of See Yaw who is the managing director of Bright Packaging. Siew Yoong and See Yaw controls Demi Maju Sdn Bhd, which owns 30.58% in the firm, the report indicates.
This is less than the combined 31.2% stake held by Syed Ali, Ang, Tee, and Lye. As of the time of writing, there are no records of the four individuals' equity ownership in Bright Packaging with the stock exchange.
A company official declined to comment when contacted by the theedgemalaysia.com over telephone as the parties involved "are still negotiating" the dynamics of the exercise.
Bright Packaging had seen board changes in August this year. Exchange filings show that Ruzainun Abdul Halim, 50, had resigned from the board effective Aug 30 "due to her other work commitments".
The company said it had on the same day appointed Low Wan Choon, 59, as a director in the packaging manufacturer.
New major shareholders of Bright Packaging have proposed the EGM at a time when the company's financials have improved. The firm had reported a 40% rise in net profit to RM3.78 million in financial year ended Aug 31, 2012 (FY12) from RM2.7 million a year earlier as higher revenue and lower operating cost boosted bottomline, according to notes accompanying its latest numbers.
Revenue rose 13% to RM56.07 million in FY12 versus RM49.48 million previously, the company said.
Debt-free Bright Packaging had cash of RM19.94 million as at August 31, while nets assets per share stood at 62 sen.
Worth noting is Bright Packaging's industrial properties located within Klang Valley prime land.
According to the firm's annual report, the company owns two freehold sites with a combined area of 136,998 sq ft within the Subang Hi-Tech Industrial Park where the packaging material manufacturer's headquarters and factories are located.
The company's real estate assets have a collective net book value of RM10.22 million, according to the report.