Asas Dunia Bhd ('Asas') is involved in construction & property development. It is a small developer, with sizable land bank in Seberang Prai- near the Second Bridge connecting Penang to the mainland. See the map below.
Map: The Map of Penang & Seberang Perai (Source: 3.bp.blogspot)
According to the latest Annual Report for FY2011 (page 93-94), Asas has a few pieces of development land in Seberang Perai that are located in the following mukim:
Table 2: Asas's last 8 quarterly results
Chart 1: Asas's last 22 quarterly results
Asas (at RM1.66 as at 12.15pm) is now trading at a PE of 10.2 times (based on last 4 quarters' EPS of 16.26 sen). For a small developer, that PE multiple is fair. The question is how the company will unlock the value of its landbank.
Asas may have broken above its strong horizontal resistance at RM1.55-1.60. Its next resistance could be at RM2.60.
Chart 2: Assas's monthly chart as at August 14, 2012 (Source: Tradesignum)
Based on underlining asset backing & bullish technical outlook, Asas could be a good stock for long-term investment..