Hot Stock Yong Tai falls 6.4% after signing 5 property development MoUs

by **Cals** Tue 04 Aug 2015, 19:25

Hot Stock
Yong Tai falls 6.4% after signing 5 property development MoUs

KUALA LUMPUR (Aug 4): Garment products retailer and manufacturer Yong Tai Bhd ([You must be registered and logged in to see this image.] Financial Dashboard)’s share price fell as much as 6.41% after it signed five land acquisition memorandum of understanding (MoU) at once for potential property developments.
As at 3.43pm, Yong Tai (fundamental: 0.0; valuation: 0.0) was trading at 73.5 sen, down 4.5 sen or 5.77%. It was one of the top 10 most traded stocks, having 17.51 million shares done.
Yesterday, the group entered into five separate MoUs with PTS Impression Sdn Bhd, Yuten Development Sdn Bhd,Terrawest Resources Sdn Bhd, Land & Build Sdn Bhd and Admiral City Sdn Bhd.
Under these MoUs, Yong Tai and the other parties agreed to negotiate towards entering into definitive agreements for a host of proposed business and land acquisitions and joint developments that can provide it five potential property development projects with a combined gross development value (GDV) of about RM7 billion over the next eight years in Melaka, Klang Valley, and Johor.
“Of the five potential projects, development projects in Melaka may potentially contribute RM6.3 billion worth of GDV, while Klang Valley and Johor Bahru may potentially contribute RM341 million and RM363 million respectively,” Yong Tai’s press statement yesterday had read.
Subsequent to the signing ceremony, the group’s executive director Ng Jet Heong had said he was confident that Yong Tai would turn around for the financial year ended June 30, 2015 (FY15), helped by its property development venture.
For the nine months ended March 31, 2015, it posted a net profit of RM1.07 million, compared to a net loss of RM1.91 million a year ago.
Ng had said the MoUs were in line with Yong Tai’s expansion plans to grow its property development business, and that it would allow the group to “negotiate with the parties involved and work together in executing definitive agreements for the proposed acquisitions and joint ventures”.
(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.)