FUTUTEC (7161) - Stocks With Momentum: Fututech
Fututech Bhd (+ve)
SHARE prices for Fututech (Fundamental: 3/3, Valuation: 1.8/3) have been rising steadily in active trading after the company announced an asset acquisition exercise in early-February, gaining 49 sen or 42.6% to RM1.64.
It will acquire two family-owned construction companies from its controlling shareholder, Datuk Tee Eng Ho for RM380 million. The proposed acquisition comes with an aggregate profit guarantee of RM150 million for FYDec2015–FY2017.
Kerjaya Prospek — one of two companies — has an order book of roughly RM2.3 billion, 20 years of proven track record as a contractor for luxury high-rise properties and exclusive clientele that includes E&O, S P Setia and Eco World.
The acquisition is to be satisfied via the issuance of 280 million new shares at RM1.16 per share and cash.
At end-2014, Fututech has cash of RM28.6 million and zero borrowings. It plans to launch two property development projects with a combined GDV of RM500 million this year.
This article first appeared in The Edge Financial Daily, on April 9, 2015.
Fututech Bhd (+ve)
SHARE prices for Fututech (Fundamental: 3/3, Valuation: 1.8/3) have been rising steadily in active trading after the company announced an asset acquisition exercise in early-February, gaining 49 sen or 42.6% to RM1.64.
It will acquire two family-owned construction companies from its controlling shareholder, Datuk Tee Eng Ho for RM380 million. The proposed acquisition comes with an aggregate profit guarantee of RM150 million for FYDec2015–FY2017.
Kerjaya Prospek — one of two companies — has an order book of roughly RM2.3 billion, 20 years of proven track record as a contractor for luxury high-rise properties and exclusive clientele that includes E&O, S P Setia and Eco World.
The acquisition is to be satisfied via the issuance of 280 million new shares at RM1.16 per share and cash.
At end-2014, Fututech has cash of RM28.6 million and zero borrowings. It plans to launch two property development projects with a combined GDV of RM500 million this year.
This article first appeared in The Edge Financial Daily, on April 9, 2015.
