KUALA LUMPUR (June 1): Non-woven fabric manufacturer Oceancash Pacific Bhd's shares jumped as much as 24.3% today to reach an all-time high of 89 sen, likely in anticipation of further demand for its non-woven products, which are used for disposable hygiene products like facemasks.
At 3.39pm, the Main Market listee's shares were still up 20.14% or 14.5 sen at 86.5 sen apiece, which gives it a market capitalisation of RM212.18 million.
The stock saw 65.65 million shares done, over 11 times its 200-day average trading volume of 5.88 million shares. The counter was also picked by Asia Analytica as a stock with momentum at the noon market close today.
On a year-to-date basis, the counter has surged 97.72% or 43 sen from the 44 sen it was trading at on Dec 31, 2019.
Demand for non-woven fabric, in particular thermal non-woven fabric, has skyrocketed since the Covid-19 outbreak.
According to its website, Oceancash's wholly-owned Oceancash Nonwoven Sdn Bhd manufactures and trades air-through bonded non-woven and thermal bonded non-woven fabric, which is widely used in disposable hygiene products.
“Its application includes top-sheets, second layer, acquisition distribution layer (ADL), and back-sheet for diapers, sanitary napkins, wet wipes, and surgical apparels including caps, masks, and gowns,” it said.
The group made a net profit of RM7.11 million for its financial year ended Dec 31, 2019 (FY19), up 16.9% from RM6.08 million in FY18 amid higher sales, with revenue expanding 4.9% to RM89.34 million from RM85.18 million.
http://www.theedgemarkets.com/article/oceancash-hits-alltime-high-amid-greater-demand-nonwoven-fabric-facemasks
