Stocks With Momentum: Jiankun International
JIANKUN (8923) Jiankun International Bhd
Jiankun International Bhd
Over the past two months, shares for property developer, Jiankun International have almost doubled in price, to 63.5 sen. Despite the apparent increase in investor interest, the company’s underlying fundamentals remain weak.
The company has been in the red since 2010 on the back of falling revenue. Although it reported a pre-tax profit of RM8.9 million in 2013, this was due to revaluation gains on investment properties, which totalled RM11.1 million. Excluding this one-off item, Jiankun would have made a pre-tax loss of RM1.4 million.
Its business continues to weaken in 1H2014. Sales declined 42.1% y-o-y to RM2.0 million while pre-tax loss was higher at RM1.5 million compared to RM0.2 million a year ago. This was due, mainly, to discontinued operation in the services (air tickets) segment.
The stock is also not cheap, at 1.7 times book value. Edge Research gives it a valuation score of 0.3 out of 3.0.
By TheEdge Markets.com | October 24, 2014
JIANKUN (8923) Jiankun International Bhd
Jiankun International Bhd
Over the past two months, shares for property developer, Jiankun International have almost doubled in price, to 63.5 sen. Despite the apparent increase in investor interest, the company’s underlying fundamentals remain weak.
The company has been in the red since 2010 on the back of falling revenue. Although it reported a pre-tax profit of RM8.9 million in 2013, this was due to revaluation gains on investment properties, which totalled RM11.1 million. Excluding this one-off item, Jiankun would have made a pre-tax loss of RM1.4 million.
Its business continues to weaken in 1H2014. Sales declined 42.1% y-o-y to RM2.0 million while pre-tax loss was higher at RM1.5 million compared to RM0.2 million a year ago. This was due, mainly, to discontinued operation in the services (air tickets) segment.
The stock is also not cheap, at 1.7 times book value. Edge Research gives it a valuation score of 0.3 out of 3.0.
By TheEdge Markets.com | October 24, 2014
