KUALA LUMPUR: Shares of myNEWS.com convenience store operator Bison Consolidated Bhd rose 16 sen or 8.21% to RM2.11 on news the company is expanding into new market segments and countries.
Bison shares hit a 52-week intraday high of RM2.14 on Monday, after a large block of shares changed hands on Friday at RM1.85. A total of 10.3 million Bison shares were traded off market as the convenience store operator is set to increase the number of stores it operates by a quarter this year.
The stock is up 26.4% this year with investors bullish over a company that has showed rising profitability over the past few years. Helping investor sentiment over the stock is rising operating margins for the convenience store operator, which is often a tough segment given the thin margins such companies usually receive.
Bison’s operating margin has been improving the past three quarters and last stood at 10.1%, and with the company expanding its services into the forex business, margins, and along with profitability, should get a lift from the new business segment it is venturing into.
It currently has two stores that offer money changing services and plans to add six to 10 more shops in the money changing business.
Another business segment Bison is getting into is in the provision of parcel delivery services. In February, Bison introduced last-mile delivery postal services PGEON, via its partnership with EasyParcel. Postal users can drop-off or collect their parcels from over 300 myNEWS.com outlets throughout Malaysia.
Bison shares are trading at 32 times its earnings and the market capitalisation of the company is RM654.2mil.
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