Stock With Momentum: Ajiya Bhd(-ve)

SHARES of Johor-based Ajiya (Fundamental: 2.1/3, Valuation: 2/3) rose 4.3% on above average volume to close at RM2.88 yesterday. The stock has risen 12.9% since it was last picked by our momentum algorithm on March 30.

Ajiya is involved in the manufacture and marketing of glass and metal products used in the construction and building industries. 95% of its products are sold in Malaysia with the balance in Thailand.

For 1HFYNov2015 ended May, the company’s revenue increased 6.4% y-o-y to RM216.5 million from a year earlier. An improvement in profit margins of certain products resulted in net profits rising 29.2% to RM10.8 million in the same period.

In May, Singapore-based fund manager Yeoman Capital Management Pte Ltd emerged as a substantial shareholder with a 5.1% stake. It has since increased its holdings to 5.7%.

Ajiya trades at a trailing 12-month P/E of 10.1 times and 0.7 times book.

This article first appeared in The Edge Financial Daily, on October 2, 2015.