Hot Stock Zelan rises 13% after results turnaround, gain on IJM share disposal

by **Cals** Tue 18 Feb 2014, 17:39

Hot Stock Zelan rises 13% after results turnaround, gain on IJM share disposal

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Tuesday, 18 February 2014 12:01

KUALA LUMPUR (Feb 18): Zelan Bhd rose as much as 13% after it posted a RM23 million net profit for its 3Q results and making gains on disposal of shares in IJM Corporation Bhd.

At 11.42 am today, Zelan rose 2 sen or 9% to 24.5 sen. The seventh top active counter saw trades of some 48 million shares done.

Yesterday, the firm controlled by tycoon Tan Sri Syed Mokhtar Al-Bukhary announced to Bursa Malaysia that it had netted RM22.9 million for the third quarter to December 2013, a turnaround from a net loss of RM20.2 million in similar quarter of the previous financial year.

Revenue for the third quarter under review rose to RM51.8 million, from RM12.7 million.

For the nine months to December 2013, total profits stood at RM24.6 million, compared to a net loss of RM32.4 million. Revenue totalled RM174.1 million, up from RM47.2 million.

In a separate statement to the stock exchange, Zelan said the gain on the disposal of IJM shares at group level recently was approximately RM2.3 million, while at the company level it was approximately RM6.7 million.

“This would contribute positively to the company's earnings per share,” said the construction and property developer.

Zelan said the disposal is to realise funds to pay bank borrowings.

The firm had on February 13, 14 and 17 this year disposed 1,421,400 ordinary shares of RM1.00 each in IJM Corp.

Average disposal price stood at RM5.75 per share for a total net consideration of approximately RM8 million, it added.