HL Industries’ share price plunges 29.86%, hits limit down

PETALING JAYA: Trading in Hong Leong Industries Bhd shares saw heightened selling pressure, which resulted in a slump of 29.86% in its share price yesterday after a corporate deal involving the distribution of Narra Industries Bhd shares went ex.

Hong Leong Industries' share price fell drastically just after the market opened to close at a 15-month low of RM4.51, down RM1.91 or 29.86%, hitting the limit down level, with some 788,400 shares changing hands.

Under the corporate exercise, shareholders of Hong Leong Industries are entitled for 1,080 Narra shares for every 1,000 Hong Leong Industries shares held.

According to a research report by UOB Kay Hian, the ex-target price for Hong Leong Industries was derived at RM4.56, which is near to yesterday's closing price.

Analysts expect earnings for Hong Leong Industries to be stronger in FY15 and FY16 after having disposed of its cement business to Narra for RM448 million.

Both Hong Leong Industries and Narra are linked to local tycoon Tan Sri Quek Leng Chan.

Hong Leong Industries posted a net profit of RM167.50 million for the financial year ended June 30, an increase of 13.49% against RM147.59 million a year earlier.