MAGNA PRIMA BHD (-ve) 
MAGNA Prima (Fundamental: 0.15/3, Valuation: 0.3/3) is, primarily, a niche property developer. 

The company’s financial performance has been see-sawing between profits and losses from 2010 to 2014. On Monday, it released the latest 1QFYDec2015 earnings results.

Net profit more than tripled y-y to RM64.7 million on the back of a 193.1% increase in revenue to RM390.6 million. The sharp jump was due to revenue and profits recognised upon completion of its project in Melbourne, The Istana. As of May, the company has collected some 80% of the related proceeds. 

With the repayment of borrowings related to the project, the company has pared its debts from a gearing of over 300% at end-2014 to just 70.2% at end-March. Interest cover ratio improved to 6.1 times. 

On April 30, Magna Prima proposed a 1-for-2 bonus issue of warrants. The company is trading at 1.8 times book with trailing 12-month P/E of 11.6 times.
 

This article first appeared in The Edge Financial Daily, on May 13, 2015.