Stock With Momentum: Majuperak Holdings

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This article first appeared in The Edge Financial Daily, on April 10, 2017.

 

Majuperak Holdings Bhd (-ve)

SHARES in Majuperak Holdings Bhd (fundamental: 1.25/3, valuation:2/3), which triggered our momentum algorithm last Friday, closed 3.5 sen or 9.59% higher at 40 sen.

Last Thursday, the property developer announced it was disposing of two plots of leasehold agricultural land measuring 664.78 acres (269ha) in Kinta, Perak for RM17.72 million cash.

The plots are being sold by Majuperak’s wholly-owned subsidiary, Syarikat Majuperak Bhd, via open tender to Wawasan Amanjaya Sdn Bhd, which will use it for an integrated farming project.

The net book value of the asset was listed as RM81,817 as at Dec 31, 2016.

Majuperak said it will use the proceeds from the sale for group working capital, it added, and to finance its various property development projects in Perak.

The stock saw some 4.96 million shares traded last Friday. Its latest price gives it a market capitalisation of RM79.4 million.