Blumont

Blumont (formerly Adroit Innovations): the stock has had a sustained strong performance, appearing regularly on our 52 wk high alerts. There is no research coverage on this company, which has appreciated a whopping 842% ytd from 1.9cts to the current 17.9cts. We note the following newsflow on the e-business solutions provider (under Adroit) turned sterilization provider and property developer. i) significant sh/h Ooi Cheu Kok has been raising his stake over the Oct to Nov '12 period , to the current 7.59% level, while previous signficant sh/h Chan Kern Miang has exited his 6.44% stake entirely. ii) 3Q12 results were good, with net profit up 5-fold at $4.4m, thanks to higher revenue from its sterilization business, as well as big jump in other gains due to increase in fair value gains on quoted financial assets. The stock trades at 6.5x annualized 9M12 P/E (though note that EPS is lumpy in nature), and 3x P/B. iii) on 6 Sep '12, the group finally completed the proposed acquisition of 6 units of properties at Clear Water Residence located on Changkat Semantan, Damansara Height, northwest of KL, Msia. The acq was first proposed exactly 2 yrs ago on 6 Sep '2010, but fraught with delays. The group intends for the new acq to add to its investment property portfolio. An interesting observation is that Ipco, which is also listed on SGX, owns a 9.7% stake in Blumont. Ipco's share price performance has been relatively moderate vs Blumont's, and is -4.8% vs the latter's +24.7% move today.