SLP Resources Bhd (-ve)
TRADING of the shares in Kedah-based plastic packaging product manufacturer SLP Resources Bhd (fundamental: 1.75/3, valuation: 1.1/3) triggered our momentum algorithm yesterday for the first time since July 2016.
The stock closed five sen or 3.82% higher at RM1.36, after 1.44 million shares were traded, compared with its 200-day average volume of 71,619 shares.
SLP recently said given additional demand for its flexible packaging products, it will use RM7 million from the proceeds raised via a private placement last year to buy a new printing line, instead of building a warehouse.
It had set up an alternative storage area at its existing Kulim factory which, it said, allows for higher printing capacity and therefore additional revenue.
SLP’s net profit quadrupled in the second quarter ended June 30, 2018 to RM10.51 million from RM2.56 million a year ago, due to higher export sales of flexible plastic packaging and better profit margins. Revenue rose 3% to RM44.37 million from RM43.23 million.