KUALA LUMPUR, March 25 — Yong Tai Bhd’s shares slipped half-a-sen to 26.5 sen in early trade after its subsidiary had been appointed the exclusive gold mining operator to undertake exploration works on a 100-hectare site in Bukit Kenderak in Pahang’s Lipis district.
At 10am, the property developer emerged as the third most active counter with 60.45 million shares traded.
Yesterday, Yong Tai announced that it had entered into a mining agreement with a member of the Pahang royal family and Amazing Logic Sdn Bhd.
Public Investment Bank Bhd said the firm was mildly positive on this development as it allows the group to potentially strengthen its earnings base, given the challenges faced by its leisure-related segment in light of the Covid-19 pandemic.
“The company could reap a monthly revenue of RM4.5 million from this venture. However, we leave our estimates unchanged at this juncture pending more clarity on the deal.
“Upside to the group’s share price may come from more significant headway made in its vaccine-related venture and earlier-than-expected opening of its Encore Melaka theatre,” it added.
The research house retained its neutral call on Yong Tai, with an unchanged sum-of-parts derived target price of 28 sen. — Reuters
