Hot Stock Iris rises 6.3% after clinching RM622.7m Putrajaya mixed project

by **Cals** Wed 02 Dec 2015, 20:41

Hot Stock

[size=28]Iris rises 6.3% after clinching RM622.7m Putrajaya mixed project

By Meena Lakshana / theedgemarkets.com | December 2, 2015 : 3:48 PM MYT

KUALA LUMPUR (Dec 2): Iris Corp Bhd ([You must be registered and logged in to see this image.] Valuation: 0.90, Fundamental: 0.35) shares rose as much as 6.3% to 25.5 sen today after securing a mixed development contract in Putrajaya that carries an estimated gross development cost of RM622.73 million.

At 3pm, the company's shares gave up some gains and were trading at 24.5 sen, still up 0.5 sen or 2.1%.

The stock, which had dipped to a one-year low of 18 sen on Aug 24 ahead of its first quarter financial year 2016 (1QFY16) results, has been steadily increasing since then.

The digital identification solutions provider returned to profitability in 1QFY16 with a net profit of RM693,000 compared to a net loss of RM2.55 million in the previous corresponding quarter.

It slipped into the red in FY15 with a net loss of RM23.7 million against a net profit of RM18.64 million in FY14.

Yesterday, Iris Corp announced it had been awarded the contract to undertake the proposed development of Perumahan Penjawat Awam 1Malaysia (PPA1M) and a mixed development comprising commercial and residential buildings at Precinct 19, on a tract of land measuring 16.2 acres.

It said the project was expected to contribute positively to the group in the next three financial years up to FY19.

The company, which ventured into property development just early this year, said the project involves the construction of 1,928 units of residential houses under PPA1M, with 508 residential houses and 22 units of commercial buildings for open sale.

The development is expected to be completed in two and a half years, and will be funded internally and with bank borrowings.

(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.)

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