Resintech Bhd ( Valuation: 2.60, Fundamental: 1.00) (-ve)
PLASTIC products manufacturer Resintech (Fundamental: 1/3, Valuation: 2.6/3), which last triggered our momentum algorithm in early December, rose 6.9% in active trade to close to a 3-year high of 47 sen yesterday.
The low-profile company attracted investors’ attention on Nov 30 when it announced an interim dividend of 2.5 sen per share— its first dividend since 2011, giving a yield of 8.7%.
For its financial year ended March 31, 2015 (FY15), net profit jumped 18% y-o-y to RM5.9 million on the back of a 7% growth to RM91.9 million. The plastics company attributed the improved performance to the pre-goods and services tax buying rush and lower crude oil prices, which lowered raw material costs.
However, the company expects a challenging FY16 due to weaker domestic demand and ringgit. For 1HFY16, net profit declined 17% y-o-y to RM0.7 million, affected by a 22% drop in sales and higher operating costs.
The stock trades at a trailing P/E of 9.7 times and half its book value.
RESINTC (7232) - Stock With Momentum: Resintech
http://www.theedgemarkets.com/my/article/stock-momentum-resintech?type=Stock%20with%20Momentum
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