This article first appeared in The Edge Financial Daily, on January 12, 2016.

Eurospan Holdings Bhd (-ve)

THINLY-TRADED shares of wood furniture maker Eurospan (Fundamental: 1.65/3, Valuation: 0.9/3) closed unchanged at 80 sen yesterday. Based in Penang, the company derives virtually all its sales from overseas markets in Asia, Europe and America.

Unlike other furniture producers, Eurospan doesn’t seem to benefit from the stronger US dollar as it uses currency forward contracts to manage and hedge its currency exposure.

In FYMay2015, Eurospan slipped into the red with a net loss of RM0.8 million, due to a 19% decline in revenue, rising material costs and higher operating expenses. For 1QFY16, it posted a net loss of RM0.4 million, hit by a fair value loss of RM1.2 million on currency forward contracts.

Positively, Eurospan has a healthy balance sheet with a net cash position of RM9.1 million — roughly 25% of its market capitalisation. The stock currently trades at 0.76 times book value. No dividend was paid for the past five years.