Hot Stock Berjaya Assets seen undervalued, up 13% on 4Q profit, dividend

by **Cals** Fri 15 Aug 2014, 00:51

Hot Stock Berjaya Assets seen undervalued, up 13% on 4Q profit, dividend

Business & Markets 2014

Written by Gho Chee Yuan of theedgemalaysia.com

Thursday, 14 August 2014 15:29

KUALA LUMPUR (Aug 14): Berjaya Assets Bhd reduced gains after rising as much as 13.42%. Dealers said shares of the property developer rose after it announced better-than-expected fourth quarter financials and proposed a two sen a share dividend.

At 3.13pm, Berjaya Assets changed hands at 89 sen, with 1.1 million units traded. The shares had earlier risen as much as 11 sen to 93 sen.

"The increase in cash flow and the strong growth in net profit for the fourth quarter, are the main contributors to the rise in the share price," a dealer told theedgemalaysia.com.

In a filling with Bursa Malaysia yesterday, Berjaya Assets said net profit soared 156% to RM22.92 million in the fourth quarter ended June 30, 2014, from RM8.92 million a year earlier. Revenue rose to RM106.4 million, from RM103.64 million.

The company said that the bottom line increase was due to gains registered from the revaluation of its investment properties and higher pre-tax profit reported by its gaming unit, Natural Avenue Sdn Bhd.

Berjaya Assets is the developer of the Berjaya Times Square — a prominent landmark along Jalan Imbi here.

For the full year, Berjaya Assets' net profit declined to RM43.92 million, from RM45.82 million. Revenue rose to RM419.42 million, from RM361.65 million.

Berjaya Assets' current share price at 89 sen, compares with its latest reported net assets per share of RM1.87.

Dealers said that the stock was undervalued. "For me, the counter is strongly undervalued and has a lower liquidity rate, compared to other stocks. Overall, the trading of the counter is quite stable since its listing," he said.