MULPHAL (7889) - Stocks With Momentum: Mulpha Land
Mulpha Land Bhd (+ve)
MULPHA Land (fundamental: 1.3/3; valuation: 2.4/3) rose 5.5 sen or 11.1% to all-time high at 55 sen over the past week. Last Friday, it received a mandatory take-over offer from entrepreneur Fakhri Yassin to acquire the remaining shares for 49.7 sen per share.
The unconditional take-over offer was triggered with the exercise of a call option to acquire 75 million shares, resulting in Fakhri Yassin and related parties holding 50.4% of Mulpha Land. The offeror intends to maintain its listing status.
Mulpha Land, the property arm of Mulpha International , has development projects in the Klang Valley, Johor, Penang and Kedah. For 2014, revenue dipped 4.4% y-o-y to RM45.1 million while pre-tax profit dropped 30.6% to RM8.2 million, mainly due to an impairment loss of RM7.6 million on development lands.
Net gearing ratio was relatively high at 72.8%. The stock trades at a 12-month trailing P/E of 13.1 times and 0.89 times its book value.
This article first appeared in The Edge Financial Daily, on March 10, 2015.
http://www.theedgemarkets.com/my/article/stocks-momentum-mulpha-land
Mulpha Land Bhd (+ve)
MULPHA Land (fundamental: 1.3/3; valuation: 2.4/3) rose 5.5 sen or 11.1% to all-time high at 55 sen over the past week. Last Friday, it received a mandatory take-over offer from entrepreneur Fakhri Yassin to acquire the remaining shares for 49.7 sen per share.
The unconditional take-over offer was triggered with the exercise of a call option to acquire 75 million shares, resulting in Fakhri Yassin and related parties holding 50.4% of Mulpha Land. The offeror intends to maintain its listing status.
Mulpha Land, the property arm of Mulpha International , has development projects in the Klang Valley, Johor, Penang and Kedah. For 2014, revenue dipped 4.4% y-o-y to RM45.1 million while pre-tax profit dropped 30.6% to RM8.2 million, mainly due to an impairment loss of RM7.6 million on development lands.
Net gearing ratio was relatively high at 72.8%. The stock trades at a 12-month trailing P/E of 13.1 times and 0.89 times its book value.
This article first appeared in The Edge Financial Daily, on March 10, 2015.
http://www.theedgemarkets.com/my/article/stocks-momentum-mulpha-land
