TEXCHEM (8702) - Stocks With Momentum: Texchem
Texchem Resources Bhd (-ve)
Texchem (Fundamental: 0.4/3, Valuation: 1.2/3) has four business divisions including industrial, polymer engineering, food and restaurant services. Among Texchem’s well-known restaurants are Sushi King and Tim Ho Wan.
Since the start of 2015, Texchem’s share price has surged 65%, from RM1.00 to RM1.65 yesterday. The catalyst could be the completion, on Feb 27, 2015, of its disposal of a 28% stake in Sushi Kin Sdn Bhd, operator of the Sushi King restaurants, for RM102.2 million cash to Asia Yoshinoya International Sdn Bhd.
The sale will reduce Texchem’s stake to 70.35% and result in a RM91.4 million gain. It also raises the overall value for Texchem’s remaining stake in the company.
The gain of RM91.4 million translates into a substantial RM0.74 per share for Texchem, and will increase its current book value from RM1.53 to RM2.27 per share. Even after the price rally, the stock would be trading at 0.73 times its adjusted book value.
http://www.theedgemarkets.com
Texchem Resources Bhd (-ve)
Texchem (Fundamental: 0.4/3, Valuation: 1.2/3) has four business divisions including industrial, polymer engineering, food and restaurant services. Among Texchem’s well-known restaurants are Sushi King and Tim Ho Wan.
Since the start of 2015, Texchem’s share price has surged 65%, from RM1.00 to RM1.65 yesterday. The catalyst could be the completion, on Feb 27, 2015, of its disposal of a 28% stake in Sushi Kin Sdn Bhd, operator of the Sushi King restaurants, for RM102.2 million cash to Asia Yoshinoya International Sdn Bhd.
The sale will reduce Texchem’s stake to 70.35% and result in a RM91.4 million gain. It also raises the overall value for Texchem’s remaining stake in the company.
The gain of RM91.4 million translates into a substantial RM0.74 per share for Texchem, and will increase its current book value from RM1.53 to RM2.27 per share. Even after the price rally, the stock would be trading at 0.73 times its adjusted book value.
http://www.theedgemarkets.com
