ESCERAM (0100) - Stocks With Momentum: ES Ceramics
March 30, 2015 : 10:32 AM MYT
ES Ceramics Technology Bhd (-ve)
ES Ceramics (Fundamental: 3/3, Valuation: 1.5/3) rose 4 sen or 14.3% to all-time high of 32 sen with over 87 million shares traded over the past three days. In contrast, its average daily trading volume was 5.3 million shares in the previous 200 days.
With plants in Ipoh and Thailand, the company supplies ceramic hand formers for the glove manufacturing industry, which is seeing a major capacity expansion exercise. For 1HFYMay15, revenue grew 5.9% to RM13.3 million while net profit soared 134.5% to RM2.5 million, mainly due to improved cost management and favourable product mix.
Moving forward, it plans to adopt automation to improve cost efficiency and diversify into related businesses. It has net cash of RM10.0 million, or 5.3 sen per share, equivalent to 16.4% of its market capitalisation.
The stock trades at a trailing 12-month P/E of 14.2 times and 2.02 times book value. No dividends were paid for the past five years.
This article first appeared in The Edge Financial Daily, on March 30, 2015.
March 30, 2015 : 10:32 AM MYT
ES Ceramics Technology Bhd (-ve)
ES Ceramics (Fundamental: 3/3, Valuation: 1.5/3) rose 4 sen or 14.3% to all-time high of 32 sen with over 87 million shares traded over the past three days. In contrast, its average daily trading volume was 5.3 million shares in the previous 200 days.
With plants in Ipoh and Thailand, the company supplies ceramic hand formers for the glove manufacturing industry, which is seeing a major capacity expansion exercise. For 1HFYMay15, revenue grew 5.9% to RM13.3 million while net profit soared 134.5% to RM2.5 million, mainly due to improved cost management and favourable product mix.
Moving forward, it plans to adopt automation to improve cost efficiency and diversify into related businesses. It has net cash of RM10.0 million, or 5.3 sen per share, equivalent to 16.4% of its market capitalisation.
The stock trades at a trailing 12-month P/E of 14.2 times and 2.02 times book value. No dividends were paid for the past five years.
This article first appeared in The Edge Financial Daily, on March 30, 2015.
