YFG Bhd (-ve) 

ELECTRICAL and mechanical engineering company, YFG (Fundamental: 0.15/3, Valuation: 0.6/3), saw its shares surge 78.6% to close at 12.5 sen yesterday. The stock was “Red Flagged” by the system, due to its low fundamental and valuation score. 

YFG posted net profit for FYJune2012 and FY2013, increasing from RM1.25 million to RM4.6 million respectively. However, it fell into a net loss of RM11.04 million for FYJune2014 due to impairment losses and the suspension of its 13MW renewable biomass power plant project at Pahang. 

For 1HFY2015, revenue fell 48.1% to RM43.4 million as lesser projects were recognized. The company is also a subcontractor for the MRT project worth RM42.4 million, expected to be completed by January 2016. 

On March 4, 2015, the Kota Kinabalu High Court restrained Palikota Sdn Bhd from receiving RM12.8 million from YFG, which is related to the Jesselton Residences Waterfront project. 

The stock is currently trading at 1.45 times book value.

This article first appeared in The Edge Financial Daily, on March 19, 2015.