KUALA LUMPUR (Apr 7): Tiger Synergy Bhd was the most active counter in morning trades today after it announced it is buying land in Cheras, Selangor, to build a 120-unit condominium.
At 10.58am today, Tiger (fundamental: 1.2; valuation: 1.2) saw some 47.8 million shares changed hands. But the stock fell 1 sen or 7.7% to 12 sen.
InterPacific Securities’ remisier Sam Ng told theedgemarkets.com that the investor community might not view the land acquisition as attractive towards profitability.
“The stock might have come down as retail investors might not see the transaction as attractive in terms of future earnings contribution,” he said over the telephone.
In comparison, Ng noted the wood-based products manufacturer and property developer was traded higher at 14 sen two weeks ago. The counter is undervalued as compared to its net tangible asset of 22 sen.
Tiger told Bursa Malaysia yesterday its wholly-owned unit Promosi Juara Sdn Bhd entered into a sale and purchase agreement (SPA) with the registered owner of the land Chua Kim Hock for the said acquisition.
The proposed development is a 16-storey, one-block condominium which will house 120 units, together with a four-storey car park and four units of kiosks for common facilities as well as a basement carpark.
"The land is acquired for development to generate revenue and earnings to the company. It is held as land for development due to the development in the vicinities and is located in a strategic high growth area," said Tiger.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)