Stock With Momentum: Menang Corporation

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This article first appeared in The Edge Financial Daily, on November 27, 2015.

 

Menang Corporation (M) Bhd (-ve)

THE usually thinly traded shares of Menang (Fundamental: 1.1/3, Valuation: 2.1/3) saw trading volume surged to an average of 1.9 million shares daily since last Thursday. The stock has since risen by 18.0% to close at 78.5 sen yesterday. 

Menang is engaged in construction, property management and property development, and concession arrangements. It has secured three Private Public Partnership projects worth RM650 million from the Ministry of Higher Education Malaysia. 

Two of the projects — UiTM Campus Satelit C (Puncak Alam, Selangor) and Institut Latihan UiTM (Nilai, Negeri Sembilan) — are still ongoing while UiTM Campus Seremban 3 has been completed in January 2014. Each concession allows Menang to generate lease income for 20 years upon completion.

For FYJune2015, revenue increased 1.4% to RM276.6 million while net profit jumped 79.2% to RM53.2 million, mainly attributed to its property development projects in Seremban 3 township. Net gearing is high at 225.8%, mainly to finance the concession business.

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