TEKALA (6378) - Stocks With Momentum: Tekala
April 7, 2015 : 10:31 AM MYT
Tekala Corporation Bhd (+ve)
TEKALA (Fundamental: 0.6/3, Valuation: 1.2/3) saw active trading yesterday. Its share price gained 3.5 sen or 10.8% to 36 sen over the past three days.
After selling its loss-making vessel (chartering to oil & gas sector) in August 2013, the Sabah-based plywood manufacturer is now sitting on net cash of RM40.7 million, equivalent to 29.1 sen per share or a whopping 80.8% of its market capitalisation.
For 9MFYMar15, revenue fell 36.6% y-y to RM43.7 million. Net loss widened to RM9.2 million — compared with net profit of RM5.6 million in 9MFY14, which included one-off disposal gain of RM10.9 million — due to lower plywood sales and higher production costs.
Given its cash-rich balance sheet, Tekala has several options: focus on improving existing timber business, acquire new businesses or return excess cash to shareholders.
The stock is trading at 39% below its book value of 59 sen. No dividends were paid for the past three years.
http://www.theedgemarkets.com
April 7, 2015 : 10:31 AM MYT
Tekala Corporation Bhd (+ve)
TEKALA (Fundamental: 0.6/3, Valuation: 1.2/3) saw active trading yesterday. Its share price gained 3.5 sen or 10.8% to 36 sen over the past three days.
After selling its loss-making vessel (chartering to oil & gas sector) in August 2013, the Sabah-based plywood manufacturer is now sitting on net cash of RM40.7 million, equivalent to 29.1 sen per share or a whopping 80.8% of its market capitalisation.
For 9MFYMar15, revenue fell 36.6% y-y to RM43.7 million. Net loss widened to RM9.2 million — compared with net profit of RM5.6 million in 9MFY14, which included one-off disposal gain of RM10.9 million — due to lower plywood sales and higher production costs.
Given its cash-rich balance sheet, Tekala has several options: focus on improving existing timber business, acquire new businesses or return excess cash to shareholders.
The stock is trading at 39% below its book value of 59 sen. No dividends were paid for the past three years.
http://www.theedgemarkets.com
