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Singapore’s Big Loser for the Week

Fuji Offset Plates Manufacturing Ltd (SGX: 508) has  lost 37.5% since last Friday to close at S$0.30 on Thursday. During the same time period, the Singapore market, represented by the Straits Times Index (SGX: ^STI), added 0.6%. This makes Fuji Offset Plates Manufacturing one of the biggest losers in Singapore for the week.

The firm, as its name might suggest, manufactures and supplies aluminium offset plates and offset printing plates for the printing industry. It is also involved in the trading of chemicals used for the printing industry and the leasing of properties.

On Tuesday this week, Fuji Offset Plates Manufacturing announced that it has entered into a sale and purchase agreement on 29 August 2014 with K-Fix Production Sdn Bhd, a subsidiary of Kingsmen Creatives Ltd. (SGX: 5MZ), with regards to the sale of a property located at the Senai Industrial Estate in Johor, Malaysia.

The property, which is currently leased to K-Fix, is freehold in nature and has an area of 37,104 square meters. It will be sold for RM35 million (around S$13.8 million).

Fuji Offset Plates Manufacturing feels that it’s the right time to sell off the property given the “current outlook of the industrial property market in Johor”,  thereby unlocking its value. The proceeds from the sale will be used by the company for “investment opportunities as and when they arise”.

The company is currently trading at a lofty 50 times its historical earnings .

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P owns shares in Kingsmen Creatives Ltd.