IVORY PROPERTIES GK BHD (-ve)
IVORY (Fundamental: 0.75/3, Valuation: 1.1/3), which is principally engaged in property development and management, rose 10.6% to close at 47 sen yesterday. Volume traded surged to a one-year high of 8.0 million shares.
The Penang-based property developer appears to be cashing out from its home base and venturing into Iskandar Malaysia, Johor.
Last January, Ivory entered into a shares sale agreement to dispose of its entire 49% stake in Aspen Vison Land Sdn Bhd for RM55 million and a 21.78-ha land in Penang for RM150 million. The disposals are expected to result in a net gain of RM73 million.
For 9MFYMar2015, revenue dropped 29.2% to RM224.1 million while net profit fell 2.0% to RM14.9 million. Net gearing ratio was relatively high at 69.6%.
The stock is trading at a trailing 12-month P/E of 12.7 times and 0.48 times book. No dividend was declared for the past five years.
This article first appeared in The Edge Financial Daily, on May 21, 2015.