This article first appeared in The Edge Financial Daily on August 25, 2017
Cepatwawasan Group Bhd (+ve)
SHARES in Cepatwawasan Group Bhd (fundamental: 0.85/3, valuation: 2/3), which triggered our momentum algorithm yesterday for the first time this year, closed 4.5 sen or 4.79% higher at 98.5 sen.
It saw 13 million shares traded, compared with its 200-day average volume of 680,584 shares.
The Sabah-based palm oil company’s net profit jumped 91% to RM9.68 million for the second quarter ended June 30, 2017, from RM5.07 million a year earlier, as revenue grew 37% to RM70.35 million from RM51.28 million.
The group attributed the improved quarterly earnings mainly to an increase in the sales volume of crude palm oil by 33%, palm kernel by 32%, and fresh fruit bunches (FFB) by 46%.
FFB production was also up 15%, while a better milling margin and higher exports of electricity and empty fruit bunch oil selling prices also boosted profits. The stock is trading at 0.6 times its book value.