Hot Stock Sentoria shares touch all time high on eve of Q3 results

by **Cals** Tue 26 Aug 2014, 09:34

Hot Stock Sentoria shares touch all time high on eve of Q3 results

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Monday, 25 August 2014 16:44

KUALA LUMPUR (Aug 25) : Sentoria Group Bhd shares touched an all time high today and were among the top traded shares on the stock exchange.

Shares of the property developer rose to an all time high of RM1.57 per share today with some 2.5 million shares traded as at 4:25 pm. Its warrants had risen 10.5 sen or 12.2% to 96 sen per share.

A source within the company who declined to be named said the share price rise "could be due to the recent projects in Kuantan our company has secured."

The source said the company would be announcing its quarterly earnings this week.

The company had, in June, secured a PR1MA project in Kuantan worth RM80 million.

A note issued by TA Securities in June said that the contract win was positive but the impact on the bottom-line was expected to be insignificant.

“We are positive on the contract win but the bottom-line impact is expected to be insignificant. Using a typical contractor profit before tax margin of 6%, we raise our FY14-16 earnings by 0.9-2.6%.

“We do not expect decent margin for PR1MA house project as it is supposed to be affordable,” commented property analyst Thiam Chiann Wen of TA Securities.

Thiam mentioned in an earlier note that the company is looking to expand its leisure and hospitality operations by building two theme parks and two resorts within the Bukit Gambang Resort City (BGRC).

“The expansion strategy is ambitious but realisable, in our opinion, and by 2025, Sentoria will set to be one of the largest integrated resorts operators in Malaysia.

“We expect Morib Bay and Borneo Samariang to replicate the success of BGRC or could possibly do better than BGRC, owing to its huge target market in the areas with little direct competition,” said Thiam.

Sentoria Group was also listed among Forbes Asia’s Best Under a Billion company this year.