KUALA LUMPUR (Oct 24): Jiankun International Bhd fell as much as 11% after the Edge Research noted that the property developer's fundamentals remained weak.
Jiankun, formerly known as Nagamas International Bhd, fell as much as 6.5 sen to 55 sen before reducing losses at afternoon break. At 12.30pm, the stock settled at 57 sen.
The Edge Research report, which is published in The Edge Financial Daily and TheEdge Markets.com today, indicated that although Jiankun's share price had almost doubled over the past two months, its fundamentals were still weak.
“The company has been in the red since 2010 on the back of falling revenue. Although it reported a pre-tax profit of RM8.9 million in 2013, this was due to revaluation gains on investment properties, which totalled RM11.1 million,” Edge Research said
According to The Edge Research, excluding the revaluation gains, Jiankun would have made a pre-tax loss of RM1.4 million in financial year (FY) ended December 31, 2013.
In 1HFY14, Jiankun's pre-tax loss widened to RM1.5 million compared to about RM200,000 a year earlier.
The weaker results were mainly attributed to discontinued operations at its air ticket segment. The Edge Research also noted that Jian Kun shares were not cheap at 1.7 times its book value.