In the last three months, Yeakin Polymer, Khan Brothers PP Woven, and Olympic Accessories saw 141%, 58%, and 40%, rise in their shares prices
Olympic Accessories, Yeakin Polymer, and Khan Brothers PP Woven – suppliers of accessories and packaging items to apparel exporters – saw a steep rise in their share prices with their business remaining on the downward trajectory in the October-December quarter.
On the other hand, KDS Accessories and SK Trims and Industries’ share prices dropped in the last three months on the Dhaka Stock Exchange (DSE) because of their profit declines in the second quarter of the current fiscal year.
Mohammad Moazzem Hossain Moti, president of the Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association, told The Business Standard, “During the July-December period, the country’s exports increased by 28.41%. And exports in the apparel sector increased by 28%.”
“The accessories and packaging business has grown in this continuity. But our profits have fallen at an alarming rate due to rising raw materials and freight costs,” he added.
In this context, the Dhaka Stock Exchange asked Yeakin Polymer to explain the reason for the increase in its share prices. In reply, the company said it does not have any undisclosed price-sensitive information to this end.
In the last three months, Yeakin Polymer, Khan Brothers PP Woven, and Olympic Accessories saw 141%, 58%, and 40%, rise in their shares prices, respectively.
Analysts at several brokerage firms said the three companies lacked corporate governance. Stock market manipulators spread rumors and manipulate the shares of companies. There are allegations that the owners of these companies are also involved in this conspiracy.
According to the financial statements, all three companies have incurred losses in the current financial year. Even keeping pace with the country’s export growth, their business has not grown in that way.
Mohammad Enamul Kabir Khan, chairman of Khan Brothers, said in its annual report of FY2021, “The PP woven bag sector is facing problems for regulations, barring the use of PP bags in the domestic market.”
“We have also been facing challenges globally due to global environmental issues as well as world economic crisis which continue to affect the international market,” he added.
However, Deshbandhu Polymer has done well in this sector. In the October-December quarter, its sales increased by 42% to Tk24.29 crore and profit was Tk1.10 crore. However, the company had incurred losses in the same period of the previous fiscal year.
The company’s share price has also risen as the business continues to grow. Its share price has increased 23% in the past month. Its shares are currently trading at Tk24.20.
Meanwhile, KDS Accessories’ business grew 55% in the October-December quarter, but profits fell 14%.
In that quarter, it reported a revenue of Tk77.78 crore and a profit of Tk4.50 crore.
In this regard, Chief Financial Officer of KDS Accessories Biplob Kanti Banik said, “Our profit margin has decreased due to an increase in raw material and transportation costs in the international market.”
However, although SK Trims is in profit, its sales have decreased. An official of the company said on condition of anonymity that the products could not be supplied as per the demand as production at the company’s factory was disrupted.
