Magna Prima Bhd (-ve)

Magna Prima (MPB) (Fundamental: 1.1/3, Valuation: 1.4/3), a niche property developer, saw its share price rise 2.5% to close at one-year high of RM1.23 yesterday. 

On Tuesday, MPB announced its intention to fully redeem and cancel the entire 40 million redeemable convertible preference shares (RCPS) issued to Lembaga Tabung Angkatan Tentera last year. This will enable MPB to enjoy interest savings of RM2.8 million and reduce its gearing from 1.55 times to 1.36 times. 

For 1Q2015, net profit more than tripled y-o-y to RM64.7 million while revenue increased 193.1% to RM390.6 million, due mainly to the completion of its project in Melbourne — The Istana. It then declared an interim dividend of 5 sen per share, which will go “ex” on July 2.

Early this month, the company announced that it is being sued by 24 people for RM25 million, for the alleged poor quality of its six-star luxury condominium, The Avare, at KLCC.

This article first appeared in The Edge Financial Daily, on June 26, 2015.