Hot Stock Enra jumps 9.62% on Shamsul's appointment

by **Cals** Tue 16 Jun 2015, 20:54

Hot Stock
Enra jumps 9.62% on Shamsul's appointment

KUALA LUMPUR (June 16): Shares in Enra Group Bhd (formerly known as Perduren (M) Bhd ([You must be registered and logged in to see this image.] Financial Dashboard)) gained as much as 20 sen or 9.62% in the morning trades on the appointment of Ex-Petronaspresident Tan Sri Shamsul Azhar Abbas into the board.
At 11.41am, the counter pared down part of its gains to settle at RM2.23, still up 15 sen or 7.21%, making it the fifth largest gainer across the exchange.
The trading volume was relatively thin at 127,400 shares changing hands. With the current price, it has a market capitalisation of RM304.92 million.
It is worth to point out that the Enra (fundamental: 0.25; valuation: 1.1) was traded at a low of 63 sen on Feb 1, 2014 before rising to its multi-year high of RM2.60 on Dec 12 last year.
According to The Edge Research, Enra was currently trading at 31.87 of its price to earnings ratio (P/E).
Speaking to theedgemarkets.com over the phone, a dealer said the the stock appeared to be fully valued, with its P/E of 34 times as at last year.
"The stock's P/E was relatively high as compared to its peers," he said, adding it might not be a good bargain for investors.
In a filing with Bursa Malaysia yesterday, the group announced it has appointed former Petroliam Nasional Bhd (Petronas) president and chief executive officer Tan Sri Shamsul Azhar Abbas as its independent and non-executive director.
It said Shamsul, 63, had also been appointed as a member of the property group's audit, nomination and remuneration committees with immediate effect.
On its financial performance, Enra posted a net profit of RM3.03 million for its fourth financial quarter ended March 31, 2015 (4QFY15) as compared to RM3.07 million last year.
Revenue is higher at RM34.37 million versus RM13.29 million a year earlier.
For the full year, its net profit came in at RM8.81 million as compared to RM6.9 million in FY14, revenue grew to RM107.5 million from RM66.3 million.
(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.)