KUALA LUMPUR (Apr 24): Construction cum property development firm Ireka Corp Bhd saw both its shares and warrants move upwards today after announcing that its 23%-owned subsidiary Aseana Properties Ltd intends to sell off its property assets to return capital to shareholders.
Ireka’s share price reached a high of 90.5 sen in morning trade, the highest the stock has reached in over a year.
At 11.21am, the company shares were trading at 88 sen apiece, representing a 6.02% or 5 sen after over 3.69 million shares were traded.
At the same time, Ireka’s warrants also surged 7.04% or 2.5 sen to reach 38 sen.
To recap, Ireka announced during a press conference after the company’s extraordinary general meeting yesterday that Ireka would realise some of the capital returns from its investment in London-listed Aseana over the next few years.
Ireka (fundamental: 0.2; valuation: 0.9) said that the value of its investment in Aseana amounts to RM230 million.
Meanwhile, the company, which has been loss-making in the financial year ended Mar 31, 2014 (FY2014), appears on track to return to profitability. Its nine months ended Dec 31, 2014 profit stood at RM8.92 million, compared to RM14.26 million in losses the same period a year ago.
(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.)