MULPHA Land Bhd (+ve)
MULPHA Land (Fundamental: 1.3/3, Valuation: 1.1/3) soared to a 5-year high of RM1.08 on Monday before closing 3.7% lower at RM1.04 yesterday. The increased trading interest may be attributed, in part, to the emergence of new shareholders.
Based on the company’s latest 2014 annual report, savvy investors Chua Sai Men and Brahmal Vasudevan own 1.49% and 0.59% stakes in Mulpha Land, respectively. Meanwhile, its executive chairman Fakhri Yassin Mahiaddin, the eldest son of Deputy Prime Minister, holds a 32.86% stake.
The property developer is currently undertaking a private placement exercise, involving 18.18 million shares at an issue price of 86 sen per share, to finance land acquisition, repay borrowings and for working capital.
For 1Q2015, revenue declined 74.3% y-o-y to a mere RM1.4 million while net loss widened to RM3.1 million from RM2.3 million in the corresponding period a year ago.
The stock is trading at 1.80 times book. Net gearing stood at 78%.
This article first appeared in The Edge Financial Daily, on June 3, 2015.