Thursday 28 Mar 2024
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KUALA LUMPUR  (Nov 3): Careplus Group Bhd rose two sen or 4% to 51 sen after Edge Research noted that the Ebola outbreak and weaker ringgit versus the US dollar could bode well for the rubber glove manufacturer.

At 10.16am, Careplus saw 4.96 million shares changed hands. For comparison, the FBM KLCI fell 0.51 point or 0.03% to 1,854.64.

The Edge Financial Daily had today published Edge Research's report on Careplus. The stock is also mentioned in TheEdge Markets.com.

Edge Research said Careplus was deemed a stock with momentum based on analysis using a propriety algorithm by Anticipatory Analytics Sdn Bhd.

According to Edge Research, rerating catalysts for Careplus included boost in sales due to Ebola, the manufacturer's capacity expansion, as well as better profit margins from the weakening ringgit and commodity prices.

Bernama reported today that the ringgit had weakened against the US dollar.

The ringgit was quoted at 3.3035 against the US dollar from last Friday's 3.2885.

Listed on Bursa Malaysia's ACE Market, Careplus is one of the smaller glove manufacturers in the nation. Notable glove manufacturers here include Top Glove Corp Bhd and Supermax Corp Bhd.

Edge Research said Careplus shares traded at 2.4 times book value and a trailing 12-month price-earnings ratio (PER) of 38.1 times.

Bloomberg data indicated that the sector average PER was about 22 times.

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