JHM Consolidation Bhd (+ve)
JHM (Fundamental: 1.15/3, Valuation: 0.9/3) was among the most actively traded top gainers yesterday. The stock soared 89% to a fresh 3-year high of 35 sen with more than 25 million shares traded.
The sharp spike in interest came after the release of markedly stronger 1Q15 results last Friday. JHM returned to the black, with net profit of RM1.8 million, a reversal from net loss of RM1.1 million in 2014. Revenue increased 50.9% y-y to RM25 million in 1Q15 on higher demand for LED application and customisation products.
The company manufactures and assembles High Brightness Light Emitting Diode (‘HB LED’), Direct Current (‘DC’) components, fine pitch connector pins and other electronic components and products.
On April 24, JHM received an 18-month extension to comply with the Bumiputera Equity Condition, subject to submission of a compliance proposal before October 22, 2015.
JHM has a modest gearing of 10% and last paid out dividends in 2008.
JHM (0127) - Stock With Momentum: JHM Consolidation
http://www.theedgemarkets.com
