KUALA LUMPUR (May 21): Shares in Menang Corp (M) Bhd (KL:MENANG) rose to their highest in nearly nine months after the property development and management company declared a special dividend amid six-year-high quarterly earnings.
In early Tuesday morning trade, Menang rose as much as 10% or eight sen to 88 sen, its highest since Aug 29, 2023. At market close, the stock had pared some of its gains, but was still up 4.5 sen or 5.6% at 84.5 sen, valuing the company at RM442.6 million.
Trading in Menang shares was also more active than usual, with volume nearly double its 200-day moving average at over 3.6 million shares.
Year to date, the counter has risen 21.4% or 15 sen, following news of its venture into healthcare via a 20% stake acquisition in an Indonesian healthcare joint venture, as well as its plan to establish a health and wellness-related development in Negeri Sembilan.
There is currently no analyst coverage on the property developer. Menang mainly develops properties in Seremban, Negeri Sembilan. The company is developing the remaining 460 acres of mixed development land in Seremban 3, according to its website. The company also has three concession projects to develop Universiti Teknologi Mara campuses.
Most recently, Menang on Monday declared a special dividend of six sen a share as its quarterly earnings rose to a six-year high.
Net profit more than doubled to RM7.32 million for the third quarter ended March 31, 2024 (3QFY2024) from RM3.28 million a year earlier, the group's highest net profit since 4QFY2018 when it recorded a net profit of RM8.29 million.
This was despite quarterly revenue falling 5.13% to RM21.03 million from RM22.17 million.
Looking ahead, the group said it will be actively pursuing transformative opportunities while concurrently strengthening its financial position through the expansion of its capital base and reduction in borrowings.
"Further, the group will continue to explore the development opportunities on our existing land bank situated around Seremban 3, Klang, Port Dickson, Rantau, and Ulu Bernam, with the aim of maximising the potential value to our shareholders," Menang said on Monday.