Taiwanese garment manufacturer Grand Twins International Cambodia (CSX:GTI) hit its daily basement price after trading to the 10 percent daily trading limit on Monday.
The stock fell 320 riels a share to 2,930 riels from its base price of 3,250 riels with 2.2 million riels and 742 shares in daily trade.
According to Article 17 of the Cambodia Securities Exchange (CSX) Market Operation Rules, the daily price limits for equity securities trading through the Auction Trading Method (ATM) shall be equal to the amount calculated by adding or subtracting 10 percent of the base price.
Daily price limit rules are widely used by stock markets across the globe with these rules particularly popular in emerging markets (such as Cambodia) as they give a time-out period during large price fluctuations and thus serve as a market stabilisation mechanism.
GTI ‘s share price is currently the worst performing one listed on the exchange, when compared to its initial public offering of 9,640 riels a share in June 2014. It has decreased 69.6 percent date since then.
Speaking about the company’s current financial performance, the Chairman of GTI said in his 3rd quarter report this year that GTI has generated $28 million in revenue, resulting in an after-tax profit of $230,775. This represents a slight decline compared to 3rd quarter results of previous years.
According to the same Q3 report, over the first nine months of 2020 revenue was down 39.2 percent to $90.3 million from $125.8 million recorded for the same period last year.
Although after-tax-profit was actually up 2.79 percent to $566,197 from $550,824, the company recorded $296,849 in “other income”, which was mostly attributed to rental fees.
“For the remaining quarter of 2020, we will commit to [placing] more effort [in enhancing] our corporate governance and accomplish our vision and mission. Our target is to achieve higher profit more than previous years,” Yang Shaw Shin said.