This article first appeared in The Edge Financial Daily, on May 13, 2016.

Majuperak Holdings Bhd (+ve)

SHARES in Majuperak Holdings Bhd (fundamental: 2/3, valuation: 1.7/3) dropped 4% to 36 sen yesterday after 1.32 million shares were traded. In comparison, the stock’s 200-day average volume is 52,426.

On Wednesday, its share price surged 20.97% to its six-month high of 37.5 sen.

The group’s net profit for the fourth quarter of financial year ended Dec 31, 2015 (4QFY15) was over 16 times higher at RM18 million, compared with RM1.08 million in 4QFY14, mainly due to the recognition of the sale of its Sg Piah’s plantation land that amounted to RM42.5 million.

Majuperak’s revenue for the quarter also jumped 44.3% to RM4.42 million from RM3.06 million in 4QFY14.

On prospects, the group expects its current-year results to remain challenging due to the gestation period of new projects and the current global economic climate. Nevertheless, it is believed its business’ long-term prospects remain favourable.

At the current share price, which gives it a market capitalisation of RM71.44 million, Majuperak is trading at a trailing price-earnings ratio of 15.52