This article first appeared in The Edge Financial Daily, on November 12, 2015.

Jaycorp Bhd (+ve)

RUBBERWOOD furniture maker Jaycorp (Fundamental: 1.4/3, Valuation: 2/3) jumped 11.9% to close at 98.5 sen yesterday on a sharp spike in volume. The stock has surged by 56.3% year-to-date, partly due to the stronger USD.

Besides furniture manufacturing, Jaycorp is also involved in kiln-drying, packaging (carton boxes) and renewable energy. For FYJuly2014, the Melaka-based company derived 55% of its sales from overseas, mainly North America and Asia. 

For FY2015, revenue increased 4.9% to RM247.9 million, thanks to increased exports of furniture. 

Net profit, however, declined 7.3% to RM8.0 million, hit by a RM4.3 million write-off on receivables and inventories.

The company proposed a first and final dividend of 4.0 sen for FY2015, giving a net yield of 4%. The dividend is subject to the shareholders’ approval at the forthcoming annual general meeting in December.

The stock trades at a trailing P/E of 15.1 times and 0.93 times book. The company has consistently paid dividends of 3.5 sen from FY2012-FY2014.