This article first appeared in The Edge Financial Daily, on February 5, 2016.

Tadmax Resources Bhd (+ve)

TADMAX (fundamental: 2/3, valuation: 0.9/3) jumped 9.4% in active trade to end the trading session at 35 sen yesterday. Originally a Sarawak-based timber concessionaire, it has diversified into property development, construction, industrial supplies and oil palm development.

Tadmax was loss-making in the past five years and had a high net gearing ratio of 110% as at end-December 2014. However, it posted a net profit of RM71.6 million in its second quarter ended June 30, 2015 (2QFY15) after it disposed of 310 acres of land in Pulau Indah, Klang, to a subsidiary of 1Malaysia Development Bhd for RM294.4 million.

With the bulk of proceeds used to repay bank borrowings, Tadmax has successfully de-geared and is now focusing on its property development project in Labuan. For its 3QFY15, it reported a net loss of RM2.8 million due to site progress of the development works being hampered by the frequent rainfall.

Tadmax is currently in the process of disposing 60 acres of land in Pulau Indah for RM48.4 million.