Thursday 28 Mar 2024
By
main news image

This article first appeared in The Edge Financial Daily on May 26, 2017

Hengyuan Refining Co Bhd (+ve)

SHARES in Hengyuan Refining Co Bhd (fundamental: 1.4/3, valuation: 1.5/3), previously known as Shell Refining Co (Federation of Malaya) Bhd, triggered our momentum algorithm yesterday for the third time this month.

The counter climbed 9.23% or 49 sen to its one-year high of RM5.80, making it the second-largest gainer on Bursa Malaysia yesterday. It saw 4.97 million shares traded, compared with its 200-day average volume of 609,396.5 shares.

Yesterday, it was reported that the group will be upgrading its refinery facilities to comply with local product quality and environmental requirements by the third quarter of 2018.

The group also announced a near tripling in net profit to RM264.33 million from RM101.65 million on an improved gross profit margin, while quarterly revenue jumped 56% to RM2.9 billion from RM1.9 billion.

The stock is currently trading at 1.58 times its net book value and is at a trailing 12-month price-earnings ratio of 4.75 times.

      Print
      Text Size
      Share