KUALA LUMPUR: Funeral service provider Xiao En group managing director Datuk Frank Choo Chuo Siong has been accumulating shares in Global Oriental Bhd (GOB) since July.

Choo had bought an additional 1.09% stake or 4.93 million shares direct stake as at last Thursday, on top of his indirect interest of 7.93% or 40.98 million shares, according to filings with Bursa Malaysia.

Coincidentally, GOB’s share price staged a strong rebound last two days after the property stock had been in the doldrums for more than two years since the fourth quarter (4Q) of 2017.

Its share price has soared more than 30% since the start of the week from last Friday’s closing of 22 sen. It closed at 27.5 sen yesterday, up 12.24% or three sen. Some 1.74 million shares were traded, with a market capitalisation of RM127.31 million.

Like its peers in the property sector, GOB shares are relatively undervalued based on its asset values.

GOB’s net asset was at 62 sen per share. Its properties as at March 31 carried a total net book value of RM302.72 million.

According to the group’s latest annual report, GOB had about 500 acres (202.34ha) of land bank for development, including those under joint ventures, while having total unbilled sales of about RM655 million as at March 31.

The land held for property development stood at RM269.11 million in the quarter under review, up from RM266.63 million in 4Q of financial year 2019 (4QFY19).

As at June 30, GOB’s cash pile stood at RM146.3 million. Its total assets amounted to RM998.98 million, of which RM671.9 million were current assets, while the remaining RM327.07 million were non-current assets.

The group’s long-term debts were at RM140.57 million while current liabilities were at RM65.97 million.

GOB returned to the black in 1QFY20, after seven consecutive quarters of losses. The developer posted a net profit of RM1.84 million compared to a net loss of RM8.64 million. Revenue took a leap to RM40.55 million in 1QFY20 from RM27.85 million a year ago.

The group attributed the turnaround to higher sales recognition from a development project in Seri Kembangan and lower operating expenses.

The group’s ongoing projects include RM167 million Galleria 2, Seri Kembangan, RM1 billion Pavillion Embassy, Kuala Lumpur, and Phase 2 of Villa Heights.