KUALA LUMPUR (Nov 18): Gunung Capital Bhd rose as much as 2.5% after Insider Asia said its financials would be helped by recurring income from electricity sales to Tenaga Nasional Bhd.
Gunung rose as much as two sen to 83 sen before reducing gains. At 9.51am, the stock was traded at 82.5 sen with 140,900 shares done.
"We suspect the stock will probably fare better over the longer-term. It recently signed two power purchase agreements (PPA) with Tenaga Nasional to sell renewable energy from two mini hydro projects with total capacity of 20MW in Perak.
"When commissioned, targeted for early-2017, the projects will generate a recurring
income stream for the company," Insider Asia said in a report.
The report is available in The Edge Financial Daily and theedgemarkets.com today.
Insider Asia also noted Gunung's balance sheet. According to Insider Asia, Gunung's balance sheet is strong with net cash of RM24 million as at end-June 2014.
Insider Asia said The Edge Research rated Gunung a 2.3 out of 3 on fundamentals.
The Edge Research's fundamental factor is a composite measure of balance sheet strength and profitability. A score of 3 is the best to have while 0 is the worst.