Stock With Momentum: Sapura Resources

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This article first appeared in The Edge Financial Daily, on October 16, 2015.

 

SAPURA RESOURCES BHD (-ve)
SAPURA Resources (Fundamental: 1.4/3, Valuation: 3/3), which triggered our momentum alert for the first time, rose 6.3% to a 1-year high of RM1.01 yesterday.

Sapura Resources is primarily involved in property investment and the provision of aviation-related services. The company also owns a 49% stake in the APIIT Education Group.  

For 1HFYJan2015, revenue increased by 6.2% y-y to RM20.7 million, buoyed by higher property investment revenue. However, net profit slipped by 71.9% to RM1.0 million, due to higher finance costs. 

Last October, Sapura Resources took a loan to finance its acquisition of a 50% stake in Impian Bebas Sdn Bhd from KLCC (Holdings) Sdn Bhd for RM108.5 million. The acquisition will see the company diversifying into property development with the development of a prime land in the KLCC area.

The mixed development project, which has an estimated gross development cost of RM1.5 billion, is expected to be completed by end-2019.

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