Green Ocean shares jump most in six months

This is written by my colleague Goh Thean Eu.

KUALA LUMPUR: Green Ocean Corp Bhd's shares jumped by over 16 per cent yesterday, its highest in more than six months.

The company, a premium cooking oil exporter, saw its shares on Bursa Malaysia close 16.67 per cent higher at 31.5 sen, with more than 15.7 million shares traded. Green Ocean was one of the top 10 active stocks yesterday. It was also the highest closing since March.

"I'm not sure why the shares moved up or who bought the shares. According to normal procedures, we will only know (the buyers' details) three days later," said Green Ocean Corp managing director Lee Byoung Jin.

While Lee is unsure of the renewed interest, brokers said that the buying interests may be due to investors' expectations that the company may post an improved quarterly financial results for the quarter ended September 30 2012. 

The company, which had been bleeding losses for four years, is banking on the Novelin technology to get back to profitability. Malaysian Palm Oil Board developed the technology and Green Ocean pays the board a royalty for a 20-year exclusive use.

The Novelin technology allows Green Ocean to produce palm cooking oil which has cold stability at 0°C, which means it remains liquid and clear in cold temperature. Regular palm-based cooking oil tend to become jelly-like and cloudy at about 24°C, rendering it not popular among retail clients during winter. 

It was reported that the company is targeting a net profit of RM2.5 million for the financial year ending March 31 2013 and RM15-20 million net profit for the financial year ending March 31 2014. 

However, the management clarified that the target is achievable provided it signed a supply and production deal with a conglomerate. In February, Green Ocean told Bursa Malaysia that it was still in talks with the conglomerate. To date, no agreement has been signed.