Pecca Group Bhd shares recorded the highest loss counter traded on Bursa Malaysia today despite receiving positive developments on 9 August 2021.
Based on the development, Rentas Health has secured a contract worth RM25.2 million to supply Covid-19 polymerase reaction (PCR) test kits to the Ministry of Health.
In addition, the company has also proposed to acquire a 51% stake in the shares.
At 11.30am, Pecca's shares plunged 39 sen or 10.32% to RM3.39, bringing the market capitalization to RM637.32 million.
The counter opened higher before seeing a plunge to a daily low of around RM3.24 today with a total of 1.48 million shares changing hands.
As of Aug 11, Pecca shares had risen more than 107.32% from RM1.64 achieved in early January.
But in the past, Pecca has also gained positive prospects for unexpected profits.
Through a statement issued, Rentas Health will provide a profit after tax guarantee of not less than RM23 million for the financial year ending June 30, 2022.
Of Pecca's 51%stake, the group's share amounts to RM11.73 million and is much higher than its net profit of around RM8.39 million.
For the first nine months, the accumulated net profit was RM19.21 million.
For information, Rentas Health started operations in March 2020 and is involved in supplying Covid-19 test kits and personal protective equipment (PPE).
Teoh Zi Yuen is a subsidiary of Pecca group managing director Datuk Teoh Hwa Cheng said the company believed that demand for masks, PPE and Covid -related products would continue to be strong.
"In the meantime, we will dedicate our efforts to R&D (research and development) to maintain a strong competitive advantage and continue to lead in product innovation," he said.
