KUALA LUMPUR (Dec 21): ACE Market-listed Supercomnet Technologies Bhd, which has been saying it wants to apply for a transfer of its listing status to the Main Market of Bursa Malaysia, plans to submit its application to the regulators in the next three months.

Approvals are required from the Securities Commission Malaysia (SC), Bursa Securities and Supercomnet shareholders. It expects the proposed exercise to be completed by end-June next year, the group said in a statement on Wednesday (Dec 21).

The group previously said it had expected to complete the exercise by the end of this year.

In its latest statement, Supercomnet said the proposed transfer marks a significant milestone for the group — which makes medical devices and cables and wires for the medical, automotive and industrial segments — and signifies its growth, profitability and financial strength as it has met the profit track record requirement for the transfer.

According to Supercomnet, it achieved an audited net profit of RM25.21 million for the financial year ended Dec 31, 2021 (FY2021), and an aggregate audited net profit of RM68.1 million for the past three financial years of FY2019, FY2020 and FY2021.

Under the SC's equity guidelines, a corporation is required to achieve a net profit for the most recent financial year of at least RM6 million, and an aggregate audited net profit of at least RM20 million for the recent three to five full financial years.

“We hope our growing earnings base, complemented by the Main Market status, will be able to attract larger institutional and private equity funds who will grow together with us,” said Supercomnet managing director James Shiue Jong-Zone.

“Supercomnet is very much still in the growth phase. We will continue to diligently build up our existing medical and automotive businesses, while at the same time look out for earnings accretive mergers and acquisition opportunities in the medical segment,” added Shiue, who controls 59.992% in Supercomnet — 20.184% directly and 36.808% indirectly.

For its third quarter ended Sept 30, 2022, Supercomnet posted its highest ever quarterly net profit of RM10.1 million, on a revenue of RM45.14 million. This raised its net profit for the first nine months of FY2022 by 55.6% to RM26.91 million, on a revenue of RM120.98 million.

In its bourse filing, Supercomnet further said it has met the requirement to have a sufficient level of working capital for at least 12 months from the date of its announcement for the proposed listing transfer, positive cash flow from operating activities over the profit track record period, and no accumulated losses based on its latest audited consolidated statement of financial position as at Dec 31, 2021.

As at Dec 31, 2021, it had net assets of RM309.68 million, with current assets of RM211.90 million and current liabilities of RM22.13 million — representing a current ratio of 9.58 times. Cash and cash equivalents stood at RM41.67 million.

The group, whose share price closed seven sen higher at RM1.67 on Wednesday, has a market capitalisation of RM1.27 billion, as compared to RM144.08 million when it was first listed in April 1999.

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