KUALA LUMPUR: Shares of integrated palm oil and healthcare-based SOUTHERN ACIDS (M) BHD rose to a high of RM4.80, the highest since mid-August on rising optimism on its potential diversification into property.
At 11.35am, it was up 12 sen to RM4.78. There were 25,300 shares done at prices ranging from RM4.78 to RM4.80.
The FBM KLCI was down 1.31 points or 0.07% to 1,762.69. Turnover was 1.26 billion shares valued at RM517mil. There were 317 gainers, 351 losers and 354 counters unchanged.
StarBiz reported Southern Acids has net cash of RM164.2mil as at the end of March, which supports the company’s future expansion as well as dividend payments.
Southern Acids has consistently been paying a dividend of five sen per share since financial year (FY) 2009, except for FY2010 and FY2011, when it paid six sen per share.
But what makes Southern Acids an interesting stock to watch is the potential diversification into property in the foreseeable future.
Southern Acids has a 644-acre plantation land bank in Kota Kemuning, Selangor, which has the potential to be developed into a mixed property project.
“This is part of the group’s plan if the management decides to re-develop this plantation land bank into property.
“It make sense given its prime location within the premier Bandar Rimbayu township by IJM Land Bhd in Kota Kemuning. But for now, it is still status quo,” the report said, quoting a source.