Jiankun International Bhd (+ve)
SHARES for property developer, Jiankun (Fundamental: 2.1/3, Valuation: 0/3) continued to rise yesterday on heavy volume. After falling as low as 21.5 sen in early January, the stock is now up 42.8% for the year-to-date, closing at 35 sen yesterday. 

Jiankun was loss-making between 2010 and 2012. Although it reported a pre-tax profit of RM8.85 million in 2013, this was due to revaluation gains on investment properties, which totalled RM11.09 million. Excluding this revaluation figure, Jiankun would have made a pre-tax loss of RM2.24 million.

 The company fell back into the red in 2014, with pre-tax loss of RM1.97 million on the back of 14.5% decline in revenue — even after taking into account RM1.71 million gain from disposal of its wholly owned subsidiary, Nagamas Land Development Sdn Bhd. 

Jiankun has a net cash of RM25.2 million or RM0.16 per share, after having completed a 2-for-1 rights issue exercise in December 2014. 

This article first appeared in The Edge Financial Daily, on March 5, 2015.