MyMBN Hits All-Time Low after Suspension of Bird’s Nest Exports
Share Price Tumbles to Record Low
MyMBN Bhd, the first bird’s nest processor to list on the ACE Market of Bursa Malaysia, saw its share price plummet to an all-time low after the government temporarily suspended bird’s nest exports to China, its biggest market.
The stock fell by one sen to 12 sen (a drop of 7.7%) in early morning trading, its lowest since it was listed on the ACE Market in July 2023. It closed at the same price, valuing the company at RM46.3 million.
Year-to-Date Losses and Initial Public Offering Price
Its share price has slumped nearly 37% year-to-date, having faced losses as costs and expenses grew faster than revenue. Its share price is now 42.86% lower than its initial public offering price of 21 sen.
Reason for Suspension
The Melaka-based company received a Christmas Day sucker punch after the veterinary services department issued a temporary suspension of bird’s nest product exports to China from Dec 25. The suspension was prompted by the presence of the Newcastle disease virus in Malaysia, as reported to the World Organisation for Animal Health.
Impact on the Industry and Company
“This suspension affects the entire industry, covering both raw cleaned and raw uncleaned edible bird’s nest products,” MyMBN said in a bourse filing yesterday. The China market is critical for MyMBN as it makes up more than half of its revenue. The industry-wide suspension comes as the company embarks on an ambitious expansion of its business in China.
Expansion Plans and Financial Performance
In July, MyMBN announced that it planned to further expand into the Chinese market through the acquisition of an 80% stake in Guangxi Nan Yang Birdnest (M) Co Ltd. The acquisition was expected to open opportunities for processing and sale of raw clean edible bird’s nest products in China. For the third quarter ended Sept 30, the group saw its net loss narrow to RM896,000 from RM1.57 million a year ago, while revenue jumped 32.6% to RM11.47 million from RM8.65 million.
CEO and Major Shareholders
CEO Lavernt Chen Vun Wo is MyMBN’s biggest shareholder with a 34% stake, followed by chairman Liw Chong Liong and non-executive director Lee Wei Kong with about 11% each.
Conclusion
MyMBN’s share price tumbled to an all-time low after the suspension of bird’s nest exports to China, its biggest market. The company faces significant challenges in the coming months as it navigates the suspension and its impact on its business.
FAQs
Q: What caused the suspension of bird’s nest exports to China?
A: The suspension was prompted by the presence of the Newcastle disease virus in Malaysia, as reported to the World Organisation for Animal Health.
Q: How much of MyMBN’s revenue comes from China?
A: The China market makes up more than half of MyMBN’s revenue.
Q: What are MyMBN’s expansion plans in China?
A: MyMBN plans to expand its business in China through the acquisition of an 80% stake in Guangxi Nan Yang Birdnest (M) Co Ltd.
Q: What is the current share price of MyMBN?
A: The current share price of MyMBN is 12 sen, its lowest since it was listed on the ACE Market in July 2023.