KUALA LUMPUR: Kim Teck Cheong Consolidated Bhd (KTC) aims to move up a notch after its listing status is transferred from the ACE Market to the Main Market of Bursa Malaysia Securities.
The Securities Commission Malaysia has approved the transfer of the company, which is involved in the distribution and warehousing of a variety of consumer packaged goods, including foods and beverages, personal care, cosmetics, over-the-counter drugs, health supplements, and household products.
Its executive director Datuk Dexter Lau said the transfer will unquestionably improve the company's corporate profile and reputation whilst being accorded higher recognition amongst institutional investors.
Over the last one year, the company's stock has increased by 75 per cent, or 10 sen. It closed at 24 sen today in the afternoon session, giving the company a market capitalisation of RM163.57 million.
Lau said KTC is "undoubtedly grateful" and expressed its immense gratitude to the relevant authorities for approving this transfer to the Main Market.
"With global economies moving into this post-pandemic era, I believe this transfer is timely where we are more than ready for the next phase of our journey following the leap to the Main Market," he said in a statement.
KTC was listed on the ACE Market in 2015. Its revenue and net profit for the fiscal year ended June 30, 2016 (FY16) were RM341.2 million and RM2 million.
In FY22, the company's revenue and net profit increased to RM705.8 million and RM22.1 million, respectively, representing a solid growth rate of 207 and 1,105 percent.
KTC said that it has achieved an improved current ratio of 123 per cent and a gearing ratio of 48 per cent in FY22 as compared to FY16.
With these, the company has successfully increased its cash flows, displaying a 68 per cent increase in net operating cash flow and a 178 per cent increase in net assets in FY22 compared to FY16.
KTC has also improved its trade receivables and inventory turnover days by 266 and 173 percent, respectively.