Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on June 8, 2017

Frontken Corp Bhd (+ve)

SHARES in Frontken Corp Bhd (fundamental: 2.5/3, valuation: 0.5/3), a service provider of surface engineering in the Asia-Pacific region, triggered our proprietary momentum algorithm yesterday for the first time this month.

The stock which performs overhaul, repair and maintenance services for critical industrial equipment closed 2.5 sen or 8.62% higher at 31.5 sen with a volume of 151.79 million shares, exceeding its 200-day average volume of 11.2 million shares.

On Tuesday, the group said in a bourse filing its plans to buy another 11.42% stake in Ares Green Technology Corp (AGTC) for RM13.3 million to raise its shareholding in the Taiwanese company to 84.6%.

Frontken said it would use internally generated funds to purchase the additional stake from six private entities and persons.

The purchase provides an attractive opportunity for the group to further increase its interest in AGTC.

At the current share price, Frontken is trading at 1.31 times its book value.

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