Matang Bhd (-ve)

TRADING of shares in Matang Bhd (fundamental: 1.5/3, valuation: 1.8/3) triggered our momentum algorithm last Friday for the third time this year.

The stock closed one sen or 13.33% higher at 8.5 sen, with 26.78 million shares done, compared with its 200-day average of 1.33 million shares.

In October, Matang announced it planned to diversify its business to include durian plantation and related activities, which it believes may contribute 25% or more of the group’s net profit moving forward.

Matang, which currently derives all its revenue from the sale of fresh fruit bunches from its oil palm plantation activities, said the diversification is to mitigate its reliance on palm oil, diversify and expand its earnings base, going forward.  So far, Matang has identified 46.6ha within its existing oil palm estate of 1,094.15ha in Johor for the planting of durian. The identified area, which is currently planted with oil palm trees above 20 years, had been identified for replanting.