YNH Property surges 11% to three-week high after default remedy

• YNH rose as much as 11% to 50 sen, its highest since April 8, 2024.

KUALA LUMPUR (April 29): Shares of YNH Property Bhd surged to their highest in three weeks as investors breathed a sigh of relief after the real estate developer said it has remedied the technical default of its sukuk programme.

YNH rose as much as 11% to 50 sen, its highest since Apr 8, 2024. The stock was trading at 48 sen, still up about 6.7%, at noon and broadly outperformed peers in the property sector and the country's benchmark index FBM KLCI.

Trading volume totalled more than 20 million shares, more than double the average over the past two weeks. At the current price, its market capitalisation is RM253.92 million.

Currently, the stock is not covered by any institutional analysts.

On Friday, YNH announced that it has remedied the technical default involving its sukuk programme that led to a downgrade of the company's rating by MARC Ratings recently, and assured that it will maintain compliance to prevent further technical defaults.

The group also said it has issued a clarification to bondholders via Malaysian Trustee Bhd on the issue, as well as its mall sale proceeds, bond collateral and the appointment of a new auditor.

MARC had in an April 8 statement said YNH was in a "technical default" for its Islamic medium-term notes programme as it had failed to deposit the second monthly payment of RM6.1 million due on March 28, 2024 as part of the build-up in the reserve account.

The ratings agency subsequently downgraded YNH's rating further to BBB-, from BBB+, three months after it assigned a negative watch on the property group.

YNH had also announced that the sale of its Kiara 163 Retail Park to Sunway REIT for RM215 million is in its final stages, pending shareholders' approval at an upcoming extraordinary general meeting.

The transaction is scheduled to be completed by June 2024, YNH said.

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YNH says it has remedied 'technical default' involving sukuk programme

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