Asia Knight Bhd (-ve)

ASIA KNIGHT (Fundamental: 0.6/3, Valuation: 0.3/3), rarely traded since mid-December last year, saw increased trading activity since early May. It has since gained 38.6% to close at 48.5 sen yesterday. 

Notably, the stock plunged from RM1.10 to a low of 22 sen, after it was classified as a PN17 company last October.

In March, Asia Knight, a manufacturer of plastic parts, has entered into a sale and purchase agreement to dispose of two parcels of land together with its 2-star Citiview Hotel in Kuantan for RM17 million. The disposal, which has been approved by shareholders on May 29, will see Asia Knight cease its hotel business.

For 9MFYJun2015, it reported sales of RM8.3 million and a net loss of RM18.3 million, owing to impairment of assets for its particleboards business of RM15.5 million. 

The stock is trading at 1.83 times book. The company has until end-October 2015 to submit its regularisation plan.

This article first appeared in The Edge Financial Daily, on June 9, 2015.