PeterLabs shares jump 43pct to fresh high amid director misconduct probe

New Straits Times

6 days ago

KUALA LUMPUR: PeterLabs Holdings Bhd surged 11.69 per cent to a fresh all-time high of 43 sen, extending a rally that began last month amid a widening probe into alleged misconduct involving its directors.
The counter opened lower at 37 sen, down 3.90 per cent from Wednesday's close of 38.5 sen, before rebounding sharply to a morning high of 55 sen, up nearly 43 per cent. As at press time, 4.42 million shares had changed hands.
Yesterday, PeterLabs announced that the company and its subsidiary Thye On Tong Trading Sdn Bhd had initiated legal proceedings against its suspended executive director Datuk Loh Saw Foong and another director Datin Lin Ching Yein.
This follows earlier disclosures made on May 13 and May 26, 2025, regarding Loh's suspension. The group is seeking various declaratory reliefs and damages as part of the legal action.
PeterLabs' share price rally began on April 8, when the stock was trading at 18.5 sen. At its current price, the stock has gained 132.43 per cent in just over seven weeks.
On April 21, the stock jumped to 29.5 sen, with trading volume spiking to 22.87 million shares, the highest in at least two years.
This followed a raid by the Malaysian Anti-Corruption Commission (MACC) on PeterLabs' offices as part of an investigation into alleged misconduct involving Loh and Lin.
PeterLabs logged its previous all-time high of 37 sen per share on April 5, 2019.
The group, which manufactures and distributes animal health and nutrition products, has yet to detail the potential operational impact of the legal developments.
For the fourth quarter ended Dec 31, 2024, PeterLabs' net profit fell 9.5 per cent to RM667,000 from RM737,000 a year earlier, on higher administrative and distribution costs.
The group said the decline was largely due to lower operating profit, which dropped 59.7 per cent year-on-year to RM631,000, despite relatively stable revenue.
Revenue for the quarter slipped 2.0 per cent to RM45.37 million from RM46.29 million previously, mainly due to weaker sales from the trading segment, which recorded a pre-tax loss of RM162,000.
For the full financial year, PeterLabs posted a net profit of RM2.84 million, down 17.5 per cent from RM3.45 million in 2023, while revenue dropped 5.5 per cent to RM176.03 million from RM186.21 million.
The group has changed its financial year end from Dec 31 to June 30, with the next reporting period covering 18 months from Jan 1, 2024, to June 30, 2025.