Magma shares jump nearly 13pct to fresh high on heavy volume
KUALA LUMPUR: Shares of loss-making Magma Group Bhd surged to a new high of 47 sen in early trade, rising 9.30 per cent or four sen, with trading volume hitting a one-month peak.
The counter, formerly Impiana Hotels Bhd, opened flat at 43 sen before climbing as much as 12.70 per cent to a morning high of 48.5 sen.
By 9.54am, 19.13 million shares had changed hands, its highest single-day volume since May 19. It was the second most actively traded stock in the morning session.
Magma has been on a steady uptrend since April, driven by a string of corporate moves including the emergence of national badminton icon Datuk Lee Chong Wei as a substantial shareholder and a strategic tie-up with Chagee Malaysia.
Lee acquired a direct interest of 26.5 million shares (1.7 per cent) and an indirect interest in 127 million shares (8.15 per cent).
Year-to-date, the stock has more than doubled from 21.5 sen on Jan 2. At 47 sen, the hotel and lifestyle group boasts a market capitalisation of RM790.11 million.
The group owns and manages hotel properties under the WOLO Kuala Lumpur and Impiana brands in KLCC, Senai and Ipoh.
Following its rebranding in December 2023, Magma has branched into property development, food and beverage, spa and lifestyle ventures.
In May, Magma formed a joint venture (JV), Chagee Magma Sdn Bhd, with Chagee Malaysia to expand the premium tea chain's footprint in Malaysia. Chagee holds 60 per cent of the JV, while Magma holds 40 per cent.
Meanwhile, the April reshuffle also saw the emergence of Skyfold Express Sdn Bhd as a substantial shareholder with a 7.69 per cent stake, along with Empire Solaris Sdn Bhd, which holds an indirect interest in the same block of shares.
For the first quarter ended March 31, 2025, Magma's net loss widened to RM6.95 million from RM4.27 million a year earlier, due mainly to higher corporate-related expenses despite marginal cost improvements in its hotel operations.
Revenue for the quarter declined 8.5 per cent to RM6.34 million from RM6.92 million previously, as both its hotel operation and hotel management segments posted slightly weaker numbers. The property development segment contributed no revenue during the quarter.
The group said it expects operational stability to improve following recent corporate exercises, with better occupancy rates and tighter cost control potentially supporting future performance.
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