Asdion extends gains after new boardroom appointments

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KUALA LUMPUR (April 13): Asdion Bhd has risen as much as 10.63% today, extending its gains from Friday.

Its share price has been on an upward trend since it announced the appointment of Tengku Azlan Ibni Sultan Abu Bakar as its chairman last Wednesday (April 8), along with the appointment of Cworks Systems Bhd executive director Datuk Mohamed Ridzuan Nor Md as its executive director.

Asdion (fundamental: 1.65;  valuation: 0.3 ) rose to its all-time high of 88.5 sen today, before paring to settle at 87.5 sen as at 3pm, up 9.38% or 7.5 sen from Friday’s close, after some 542,700 shares changed hands.

The current price gives it a market capitalisation of RM99.21 million.

Tengku Azlan is currently the chairman of Kuantan Port Authority. He was also the deputy minister in the Prime Minister’s Department from 1999 to 2004, and served as deputy minister of transportation from 2004 to 2008.

Mohamed Ridzuan meanwhile, is also the co-founder of Petrol One Resources Bhd (fundamental: 0.3; valuation:0.3).

A remisier told theedgemarkets.com that the impact of such news on the share price would be short term, as the appointment does not really change the fundamentals of the company.

“The trading volume of the shares is still considered low. From the share price movement these few days, it showed that some investors have taken profit after its share price surged,” he added.

Asdion is an MSC-status company that provides integrated business and operations solutions, particularly to hospitality, recreational, supply chain logistic and data services businesses.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)