Apex Spinning resumes full-scale production, shares rise 2.3%

Apex Spinning and Knitting Mills Limited, a 100% export-oriented vertically integrated apparel manufacturer, successfully resumed full factory operations yesterday (27 June).

The restart follows a temporary production freeze triggered by escalating labour unrest earlier in the week. In a regulatory disclosure filed with the Dhaka Stock Exchange (DSE) yesterday, the company confirmed that its board and management decided to revive full-scale manufacturing activities after constructive discussions with relevant stakeholders helped restore order on the factory floor.

The temporary shutdown was imposed on 23 June under Section 13(1) of the Bangladesh Labour Act, 2006, after the management alleged that workers had made unlawful demands over service benefits.

Following the latest announcement that a conducive working environment has been restored, investors reacted positively on the capital bourse. Apex Spinning's share price rose by 2.34% to close at Tk363.70 during yesterday's trading session.

The quick resolution brings relief to the Tk307-crore market-cap company, which has been navigating a challenging financial year. During the July-March period of FY26, Apex Spinning's revenue fell 9.28% year-on-year to Tk383 crore, while its net profit dropped 15.20% to Tk2.14 crore. 

Consequently, earnings per share stood at Tk2.56, though its net asset value per share remained robust at Tk84.16.

Despite the weaker earnings trend, the textile manufacturer has maintained a stellar corporate record, consistently paying out a 20% cash dividend annually since FY21.

The stock also remains under the watchful eye of market observers after its price surprisingly soared by 140% between March and May of this year, climbing from Tk181 to Tk434.60. 

Although the DSE issued a show-cause notice regarding the unusual rally, the management maintained that no undisclosed price-sensitive data influenced the market. 

As of the May shareholding report, sponsors and directors retain a majority stake of 50.71%, institutional investors hold 11.58%, foreign buyers account for 0.25%, and general public shareholders own the remaining 37.46%