Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily, on August 30, 2016.

 

Prinsiptek Corp Bhd (-ve)Red Flag

 

SHARES in Prinsiptek Corp Bhd (fundamental: 0.15/3, valuation: 1.1/3) remained unchanged at 13 sen with a relatively high volume of 930,000 shares done, as compared to its 200-day average volume of 290,611 shares.

Prinsiptek was, however, highlighted as a “red flag” stock with momentum, suggesting investors should exercise extra caution when trading in its shares.

The group’s net profit for the second quarter ended June 30, 2016 declined 26.97% to RM918,000 from RM1.26 million a year ago, though revenue rose 20.8% to RM59.90 million from RM49.58 million.

Prinsiptek is principally involved in building construction activities and property development, including the rehabilitation of abandoned projects.

As of its closing, it has a trailing price-earnings ratio of 13.54 times and is 0.22 times its book value, with a market capitalisation of RM41.2 million. Year to date, the stock has fallen by 7.14%, but has gained by 8.33% compared with a year ago.

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