Fiamma Holdings Bhd (+ve)
THE rarely traded shares of Fiamma (Fundamental: 2.2/3, Valuation: 3/3) gained a cumulative 43.1% in two days to close at a one-year high of RM2.49 on Friday.
Last Thursday, the company proposed a series of corporate exercises, including a 1-for-2 share split and a bonus issue on the basis of one bonus share for every two subdivided shares. Fiamma also proposed to establish an employee share option scheme of up to 15%. The applications have been submitted to Bursa Malaysia.
Fiamma is primarily involved in the distribution and servicing of electrical home appliances, sanitary ware, kitchen cabinets, bathroom fittings and healthcare products (91% of revenue in FYSept2015). It is also involved in property development, which it ventured into in 2007.
For FY15, revenue declined slightly to RM333.5 million. Stripping a RM24.8 million fair value gain of investment properties, net profit would have declined 23.4% y-o-y to RM31.7 million, due to lower contributions from property development.
http://www.theedgemarkets.com/my/article/stock-momentum-fiamma-holdings
