This article first appeared in The Edge Financial Daily, on May 4, 2016.

Kerjaya Prospek Group Bhd (-ve)

SHARES in Kerjaya Prospek Group Bhd (fundamental: 2.6/3, valuation: 0.5/3) closed six sen or 3.28% higher at its all-time high of RM1.89 yesterday, after 1.11 million shares changed hands. It’s 200-day average volume is only about 90,992. The upward spiral began on March 15, when it was trading at RM1.64, and surging by 25 sen or 15.2% as at yesterday.

On Feb 25, Kerjaya Prospek released its results for the fourth quarter ended Dec 31, 2015 (4QFY15), which saw its net profit grew by 23.4% to RM4.76 million, from RM3.85 million a year ago. Quarterly revenue also increased 22.05% to RM18.6 million, from RM15.2 million in 4QFY14. The improved performance was mainly attributed to the property development segment, which it ventured into in 2014. 

In its annual report 2015, Kerjaya Prospek said it is confident of maintaining its earnings growth, driven by its combined outstanding order book of RM2.1 billion as at March 31, 2016.

At the current price, the stock is trading at a trailing price-earnings ratio of 30.1 times and is 4.49 times its book value.