Imaspro jumps 15.44% on institutional buying

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KUALA LUMPUR (July 27): Shares in Imaspro Corp Bhd rose as much as 23 sen or 15.44% today to RM1.72 on institutional buying.

As at 4.04pm, the stock pared some gains to trade at RM1.63, still up 14 sen or 9.4%, after some 764,900 shares changed hands, making it one of the top gainers across the stock exchange.

The current price gives Imaspro, a pesticide and fertiliser maker, some RM119.2 million in market capitalisation.

It is currently trading at 11.89 times its price to earnings ratio (P/E), according to The Edge Research.

SJ Securities senior remisier Goh Kay Chong told that the buying signal on the stock began on July 9, when it was trading at RM1.50.

He said some big funds start buying into the counter as retailers were disposing of their holdings.

"According to my chart, the buying signal began on July 9 and some big funds are accumulating its shares," he added.

Goh said should the trend continue, the stock is likely to breach its immediate resistance level of RM1.95.

On March 30 this year, Imaspro (fundamental: 2.5; valuation: 0.8) hit its all time high of RM1.87 on news of the emergence of Datuk Dr Yu Kuan Chon as a substantial shareholder.

According to company's filings, Dr Yu controlled some 12.24 million shares or a 15.3% stake in the company as at March 24, 2015.

In its third quarter ended March 31, the pesticide and fertiliser maker posted a net profit of RM4.54 million, up 42.8% on-year, with RM38.14 million revenue, up 16.9%. Cumulative nine months’ net profit was RM8.82 million, up 11.2% on-year, while revenue was largely flat at RM82.28 million.

(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.)