MINHO (5576) - Stock With Momentum: Minho (M)

This article first appeared in The Edge Financial Daily, on June 1, 2016.

Minho (M) Bhd (-ve)

Shares in Minho (M) Bhd (fundamental: 1.55/3, valuation: 1.1/3) closed seven sen or 4.83% higher at RM1.52 yesterday, after 1.44 million shares changed hands.

Minho seems to have begun attracting investor interests since mid-April, when its trading volume ranged between 930,000 shares and 2.06 million shares. In comparison, its 200-day average volume is 935,009 units.

The Klang-based company is primarily engaged in manufacturing, exporting and dealing in logs and processed timber products, logging activities as well as property development.

In its announcement yesterday, the company said Bursa Securities Malaysia Bhd has approved of its proposed share split, and the listing and quotation of up to 109.85 million warrants and new ordinary shares arising from the exercise of the warrants.

The regulator has also approved the listing and quotation of up to 32.96 million new ordinary shares of 50 sen each to be issued pursuant to its proposed private placement, from which the group is expecting to raise between RM12.52 million and RM18.78 million to repay bank borrowings and for working capital.

MINHO (5576) - Stock With Momentum: Minho (M)