KUALA LUMPUR (June 18): Shares in electronics manufacturing service firm ATA IMS Bhd (KL:ATAIMS) on Tuesday surged to their highest in more than two years, with the stock rising to the second place on Bursa Malaysia's most actively traded list.

ATA IMS jumped as much as 19.5 sen or 56.5% to 54 sen — a level last breached on April 13, 2022. At market close, the counter settled at 51.5 sen — still up 17 sen or 49.28% from the previous close — valuing the company at RM619.5 million. It saw 160.49 million shares traded, more than 16 times its 20-day average.

At press time, ATA IMS did not respond to The Edge’s request for comment on the sudden jump in its share price.

Year to date, shares in ATA IMS have climbed 68.9% as the company, which has been in the red for the past three financial years after losing its biggest customer, home appliance maker Dyson, narrowed its losses recently.

Once trading at over RM3 a piece, the stock has been languishing below RM1 since Dyson terminated the company as its supplier in June 2022, following an audit of the company's labour practices. While ATA IMS denied allegations of labour abuse, the stock crashed when news of the termination was first reported in November 2021, and has not recovered to its previous levels.

ATA IMS' largest shareholder is Datuk Seri Foo Chee Juan, who holds a direct 0.11% stake in the company, and an indirect 33.97% through Oregon Technology Sdn Bhd.

Other substantial shareholders include Datuk Fong Chiu Wan with a direct 26.28% stake, and Datuk Balachandran Govindasamy with a direct 0.82% and an indirect 7.15% held through PP Tech Ltd.

For the financial year ended March 31, 2024 (FY2024), the company reported a net loss of RM104.9 million, lower than the RM254.54 million it incurred in FY2023, due to lower impairment of goodwill, plant and equipment, and lower provision for slow-moving stocks.

Revenue for FY2024 dropped 56.3% to RM399.81 million, from RM915.78 million for FY2023.