KUALA LUMPUR (April 29): Shares of YNH Property Bhd surged to their highest in three weeks after the real estate developer said it has remedied the technical default of its sukuk programme.

YNH rose as much as 11% to 50 sen, its highest since April 8, 2024. The stock was trading at 48.5 sen, still up about 7.8%, at 2.30pm and broadly outperformed peers in the property sector and the country's benchmark index FBM KLCI.

Trading volume totalled more than 20 million shares, more than double the average over the past two weeks. At the current price, its market capitalisation is RM253.92 million.

Currently, the stock is not covered by any institutional analysts.

Shares of YNH have fallen nearly 89% so far this year, largely sparked by a precipitous decline in January on the back of multiple limit-downs that wiped out some RM1.9 billion of its market capitalisation. The selldown in YNH, along with Rapid Synergy Bhd’s shares, was largely prompted by margin calls.

Datuk Dr Yu Kuan Chon is the single-largest shareholder of both YNH and Rapid Synergy.

On Friday, YNH announced that it has remedied the technical default involving its sukuk programme that led to a downgrade of the company's rating by MARC Ratings recently, and assured that it will maintain compliance to prevent further technical defaults.

"The balance for the second monthly payment due April 26, 2024 has also been met by topping up the fund in the SPA account," YNH said in a statement.

The group also said it has issued a clarification to bondholders via Malaysian Trustee Bhd on the issue, as well as its mall sale proceeds, bond collateral and the appointment of a new auditor.

MARC had in an April 8 statement said YNH was in a "technical default" for its Islamic medium-term notes programme as it had failed to deposit the second monthly payment of RM6.1 million due on March 28, 2024 as part of the build-up in the reserve account.

The ratings agency subsequently downgraded YNH's rating further to BBB-, from BBB+, three months after it assigned a negative watch on the property group.

YNH had also announced that the sale of its Kiara 163 Retail Park to Sunway REIT for RM215 million is now pending shareholders' approval at an upcoming extraordinary general meeting.

The transaction is scheduled to be completed by June 2024, YNH said.

Read also:
YNH says it has remedied 'technical default' involving sukuk programme
YNH's RM170m land sale to Sunway gets fourth time extension to fulfil conditions