Hot stock: Qian Hu jumps 24% to 7-year high after news of leadership changes
Kenny Yap to step down as executive chairman at the end of the year and will be replaced by his nephew, chief executive Yap Kok Cheng
SHARES of Qian Hu rose on Monday (Oct 7) to reach a seven-year high after the company announced last week that its executive chairman Kenny Yap will retire at the end of the year.
The counter rose S$0.036 or 24.3 per cent to S$0.184 after 11,000 shares changed hands shortly after the market opened. This is higher than the stock’s average volume of 2,807 securities.
The last time the counter had reached such levels was in March 2017, when it traded above S$0.18.
By 10.38 am, the counter was still up 24.3 per cent or S$0.036, with 14,000 securities having changed hands. No married deals were recorded in early trade, ShareInvestor data indicated.
It eventually closed at S$0.141 on Monday, down 4.7 per cent or S$0.007 from the previous day.
Last Thursday, the ornamental fish service provider said in a regulatory filing that executive chairman Kenny Yap will step down from his directorial role at the end of the year, and chief executive Yap Kok Cheng will assume the post.
Kenny Yap, 59, has agreed to be an adviser to the board of directors without remuneration. He has been at the helm of the company since 1998 and led it to a listing on the Singapore Exchange.
“In 2005, some five years after Qian Hu listed, we started a management trainee programme with the aim of identifying a succession team by the time I reach the age of 55. However, in 2020, when I turned 55, we were in the midst of the pandemic, so I waited another year to announce my successor,” Kenny Yap said.
As executive chairman, Kenny Yap focused on mentoring Yap Kok Cheng, who assumed the CEO role in 2021, and on strengthening diversity within the company’s board. He also worked on improving the company’s environmental, social and corporate governance.
Kenny Yap had once vowed to bring the company’s revenue past the S$100 million mark, but the company struggled, reported The Business Times in 2020.
It posted a 10.2 per cent drop in 2019 revenue to S$76.9 million. Net profit did increase 128.9 per cent. But for the first half of fiscal year 2020, Qian Hu reported a net loss of S$525,000. Yap attributed the losses to unprecedented supply chain disruptions related to Covid-19. (*see amendment note)
In H2 FY2023, the fish vendor sunk into the red with a net loss of S$9.3 million. This was in contrast to a net profit of S$584,299 in the year-ago period. The loss was largely due to a S$7.4 million loss on the disposal of a substantial portion of its Asian arowana – also known as dragon fish – broodstock. In the latest financials, Qian Hu reported a net profit of S$250,532 for the first half ended Jun 30.
*Amendment note: An earlier version of the story said Qian Hu reported a net loss of S$525,000 for the first half of this year. The loss was, in fact, recorded in H1 2020. The latest financials also stated that Qian Hu reported a net profit.
