KUALA LUMPUR (Feb 5): HeiTech Padu Bhd’s share price soared as much as 23% to hit an intraday high of RM1.11 on Monday, paring the bulk of losses the counter experienced in recent weeks due to the margin call-induced heavy selling pressure which affected a handful of counters.  

The information technology (IT) services provider closed at RM1.10, up 19.5 sen or 21.55% from last Friday's closing price.

About 2.39 million shares changed hands — six times its 12-month average of 377,228 shares. 

With the 19.5 sen rise, the IT services provider saw RM19.74 million added to its market capitalisation, valuing the company at RM110.74 million. 

HeiTech Padu shares have risen 24% so far this year and 33% over the last one year.

On Sunday, HeiTech Padu inked a strategic collaboration agreement with the Kulim Kedah Municipal Council to propel the district’s development towards evolving it into a smart city. 

According to HeiTech Padu group chief executive officer Salmi Nadia Mohd Hilmey, the collaboration signifies a joint commitment towards creating a sustainable smart city through innovation, utilisation of cutting-edge technology, and the preservation of the environment.

In recent weeks, HeiTech Padu — along with at least 10 other counters — touched limit down after succumbing to heavy selling pressure. 

In a mere four trading days, HeiTech Padu went from a one-year high of RM1.17 on Jan 16 to 82.5 sen on Jan 19 — tanking 34.5 sen or 29.49%.

At the tail end of its descent, the counter hit limit down on Jan 19 when it touched 75 sen, from an opening price of RM1.05.

Other counters which touched limit down in a similar period were Sarawak Consolidated Industries Bhd, Artroniq Bhd, Widad Group Bhd, Jentayu Sustainables Bhd, Silver Ridge Holdings Bhd, YNH Property Bhd, Mercury Securities Group Bhd, Tanco Holdings Bhd, Rapid Synergy Bhd, and APB Resources Bhd.

While the selldown has now slowed, the casualties’ share prices, barring HeiTech Padu and Tanco, have yet to make a significant recovery. 

HeiTech Padu has been loss-making for the past six consecutive quarters.

Most recently, the company posted a RM1.4 million net loss for the third quarter ended Sept 30, 2023 (3QFY2023), 60.45% narrower than the RM3.53 million net loss a year earlier, on lower losses recorded from the purchase of hardware and software.  

This was despite an 11.94% drop in revenue to RM63.44 million for 3QFY2023, versus RM72.04 million a year earlier.

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