PETALING JAYA: It was supposed to be a good day for JF Technology Bhd (JF Tech) after announcing it had sealed an agreement with Chinese tech company Shenzhen HFC Co Ltd to form a joint venture (JV) company in Malaysia.
However, the day ended with a bitter taste for founder and managing director Foong Wei Kuong and its directors after JF Tech plunged as much as 16%, or 18.5 sen, to an intraday low of 96.5 sen.
The manufacturer of test contacting solutions for global integrated circuit makers opened at RM1.15 and hit an intraday high of RM1.16 in the morning session before falling off the cliff in the afternoon.
This prompted Bursa Malaysia to suspend the intraday short selling (IDSS) on the counter for the day. The suspension was activated following a 15% or 5 sen fall in the stock’s reference price.
The regulator said the IDSS for JF Tech will be reactivated at 8.30am tomorrow.
The stock pared its losses by the close, ending 14 sen or 12.17% lower at RM1.01, valuing the group at RM936.33 million.
Roller coaster ride
JF Tech has been on a roller coaster ride in the past few months – surging 26% in September before falling 7.3% in October. It picked up steam in November, rising as much as 14% before today’s 16% drop.
For the financial year ended June 30, 2023 (FY2023), its net profit dropped 29.7% to RM12.1 million from RM17.2 million in FY2022.
Earlier today, the group announced in a bourse filing it would form a JV company with Shenzhen HFC in Malaysia to produce materials used in high-end semiconductor chips for artificial intelligence (AI) and electric vehicle applications.
“We are excited to join forces with Shenzhen HFC to establish their first manufacturing facility outside of China. Our new facility in Kota Damansara, Selangor, has ample space to facilitate the establishment of a state-of-the-art manufacturing and design hub for our joint venture,” said Foong, adding Shenzhen HFC is a pioneer in the use of graphene materials for heat dissipation in Al chips.