Stock With Momentum: Gopeng

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Gopeng Bhd (-ve)

Gopeng (Fundamental: 0.9/3, Valuation: 1.8/3) rose 3 sen or 2.73% to close at RM1.13 yesterday, after announcing a final dividend of 3 sen per share for 2014. Volume traded jumped to 229,000 shares, five times the 200-day average of 41,477 shares.

The dividend will trade ex-entitlement on June 26, yielding investors a net 2.7%.

Formerly a cement manufacturer, Gopeng has shifted to plantation and property development after disposing of its 35.2% stake in Perak Hanjoong Simen for RM200 million cash to YTL Cement in 2010. 

Since the disposal, Gopeng’s performance has been on a downward trajectory. Revenue fell from RM17.5 million in 2011 to RM10.2 million in 2013. Net profit rose 36.9% to RM3.6 million in 2013, largely due to RM4.95 million in fair value gains from investment properties and short-term investments.

For 1Q2015, revenue decreased 4.4% y-o-y to RM2.4 million. However, net profit rose to RM7.5 million from RM71,000, mainly due to disposal of assets totalling RM13 million.

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This article first appeared in The Edge Financial Daily, on June 3, 2015.