This article first appeared in The Edge Financial Daily, on December 10, 2015.

Ekovest Bhd (-ve)

EKOVEST (Fundamental: 1.15/3, Valuation: 1.4/3) triggered our stock momentum for the first time yesterday, closing 0.9% higher to RM1.07 on heavy volume.

Kuala Lumpur-based Ekovest is primarily involved in construction, property development and toll operation through 100%-owned DUKE highway. In FYJun2015, the construction and property development contributed almost all of its operating profit. 

For FY2015, net profit plunged 60.7% to RM18.5 million, due to consolidation of the results of its loss-making toll operations. To recap, Ekovest raised RM244.4 million via a rights issue to acquire the remaining 30% equity interest in DUKE from MRCB in FY2014. 

In October, Ekovest announced a rate hike on DUKE highway. The company, however, has guided that the hike — replacing reimbursement from the government — will have a neutral impact on earnings. 

Ekovest is currently constructing mixed development project EkoCheras and the RM1.2 billion DUKE Phase-2. It plans to build the DUKE Phase-3 which is estimated to cost RM3.6 billion.