Stock With Momentum: EKIB

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This article first appeared in The Edge Financial Daily, on November 26, 2015.


Emas Kiara Industries Bhd (+ve)

SHARES of EKIB (Fundamental: 0.95/3, Valuation: 0.3/3) surged 11.1% to an intraday high of 90 sen yesterday, before closing up 5.6% to 85.5 sen. This follows the company’s announcement of 3Q2015 results. 

For 9M2015, EKIB returned to the black with a net profit of RM5.1 million, due to a one-off gain of RM8.6 million from disposal of subsidiaries. Meanwhile, revenue grew 50.1% y-y to RM41.9 million, boosted by higher contribution from its geosynthetic engineering and lighting business. 

EKIB is mainly involved in the provision of geotechnical engineering solutions. In 2011, it disposed of its geosynthetic manufacturing business, and later in 2012-2013, diversified into the trading of lighting products and property development. 

Last month, EKIB disposed of its wholly-owned subsidiary Noblecorp Engineering Sdn Bhd, which provides mechanical and engineering services, for RM1 cash and the settlement of outstanding shareholder advances amounting to RM475,567. The company expects a disposal gain of RM29,324.