Transmile surges in early trade, despite Bursa query

By Joseph Chin

KUALA LUMPUR: Loss-making Transmile Group Bhd's share price surged to a two-month high of RM2.52 in early trade on Thursday, extending its gains from yesterday that prompted a query from Bursa Malaysia Securities.

It opened flat at RM2.11. Within the first hour of trade, there were 5.19 million shares done at prices ranging from RM2.01 to RM2.52.

At 10am, it was the top gainer, trading at RM2.40, up 29 sen or 13.7%.

Yesterday, it closed 45 sen higher to RM2.11 in very active trade, prompting a query from Bursa Securities.

However, the company replied that it was not aware of any reason for the increase in the share price. It posted a net loss of RM279.64mil in the financial year ended Dec 31, 2007 from a net loss of RM63.77mil in FY06. For Q4 2007, it posted a net loss of RM179.43mil compared with a net loss of RM24.89mil in the previous corresponding quarter.

A news report recently said the express air cargo forwarder was starting off on a clean slate after making huge provisions in the last financial year.

Last November, two former Transmile directors were charged in court for knowingly authorising the furnishing of misleading financial information to the stock exchange after they could not fork out RM500,000 each to settle compounds.

Chin Keem Feung, 42, and Shukri Sheikh Abdul Tawab, 43 were charged for allowing a misleading statement in respect to Transmile's unaudited quarterly results for the financial year ended Dec 31, 2006, to be released to Bursa Malaysia Securities Bhd. The misleading statement was in relation to Transmile's reported revenue of RM989.2mil.

URL: http://biz.thestar.com.my/news/story.asp?f...59&sec=business

Transmile replaces managing director

By KATHY FONG and IZWAN IDRIS

PETALING JAYA: Transmile Group Bhd has redesignated non-executive director Liu Tai Shin as managing director to replace outgoing Wong Yoke Ming, the company told Bursa Malaysia yesterday.

It is believed Wong's resignation is a signal that the restructuring scheme at the troubled air cargo freight forwarder is almost completed.

Liu and Wong joined Transmile in June last year as part of a new team brought in to tackle the huge financial problem that arose from the discovery of massive accounting frauds over a three-year period.

Both men are accountants by training and, together with the new management, were tasked with reviving the ailing firm.

Transmile posted a loss of RM279.6mil on revenue of RM616.2mil for the year ended Dec 31, 2007. The loss was about four times bigger than the RM63.8mil reported in the previous year.

The huge write-off that contributed to last year's loss had given the company a clean slate to start over.

Recent analysts' reports suggested the company would now focus on more profitable regional routes, and that it was likely to sell the under-utilised bigger aircraft in its fleet.

StarBiz learnt that Transmile is currently looking to hire a chief executive officer to put the company back on the growth track.

While the outlook for the air cargo carrier this year remains challenging, some investors are now more willing to take a bet that the worst is over for the company.

Shares in Transmile eased seven sen, or 3%, yesterday to close at RM2.33. It was the first decline in five days, halting a rally that lifted the stock from a six-year low of RM1.51 two weeks ago.

The stock peaked at RM14.40 on Jan 3 last year.

Transmile told Bursa Malaysia on Wednesday that after "due and diligent enquiries with all its directors and shareholders," the company "was not aware of any new reason" for the sharp spike in its share price.

Major shareholders of the company include tycoon Tan Sri Robert Kuok with a 17% stake, followed by Pos Malaysia Bhd with 15%.

There had been speculation that the group's restructuring plan would involve acquisitions of new assets, with the possibility of Pos Malaysia injecting PosLaju, its courier express business.

However, PosLaju chief operating officer Nadza Abdul told StarBiz yesterday that he was not aware of any such proposal, whether to inject, integrate or amalgamate PosLaju or any other express business of Pos Malaysia, into Transmile.

"PosLaju has not been approached by any party regarding the matter highlighted," he said.

URL: http://biz.thestar.com.my/news/story.asp?f...s/20788859&sec=