This article first appeared in The Edge Financial Daily on December 4, 2017

Daibochi Plastic And Packaging Industry Bhd (+ve)
SHARES in Daibochi Plastic And Packaging Industry Bhd (fundamental: 1.3/3, valuation: 0.5/3) triggered our momentum algorithm last Thursday for the second time this year.

The flexible packaging maker’s stock closed unchanged at RM2.23 that day, with 530,500 shares done, versus the counter’s 200-day average of 67,427 shares.

For the third quarter ended Sept 30, 2017 (3QFY17), Daibochi’s net profit grew 20% year-on-year to RM7.22 million from RM6 million on higher domestic sales, while earnings per share rose to 2.2 sen from 1.84 sen. Quarterly revenue rose 8.5% year-on-year to RM102.03 million from RM94.07 million. It declared an interim dividend of 1.15 sen a share amounting to RM3.8 million for FY17, payable on Dec 28.

Its Myanmar plant, which commenced operations on July 1 this year, made its maiden contributions of RM6.5 million and RM1.8 million in revenue and pre-tax profit respectively during the quarter. On prospects, Daibochi said it is confident of recording a strong financial performance for FY17.