KUALA LUMPUR (Feb 26): Ornapaper Bhd's share price jumped as much as 30 sen or 26.79% to RM1.42 in morning trades today after the corrugated board and carton manufacturer reported an 83.1% rise in fourth quarter net profit from a year earlier and declared a dividend of three sen a share.
At 10:31am today, Ornapaper shares pared gains at RM1.38 for a market capitalisation of RM83.05 million. The stock, which saw 3.81 million shares traded, emerged among Bursa Malaysia top gainers.
Yesterday, Ornapaper told Bursa that net profit rose to RM5.31 million in the fourth quarter ended Dec 31, 2019 (4QFY19) from RM2.9 million a year earlier. Revenue, however, fell to RM90.91 million from RM93.74 million.
For the full-year, Ornapaper said cumulative FY19 net profit climbed to RM13.2 million from RM9.43 million a year earlier although revenue was lower at RM331.58 million versus RM349.85 million.
Ornapaper declared a final dividend of three sen a share. The ex- and payment dates for the dividend fall on July 1 and 16 respectively, it said.
Ornapaper's latest reported net assets per share stood at RM2.36.
Today, Public Investment Bank Bhd analyst Lee Siao Ping wrote in a note that Ornapaper shares could be moving higher, gaining traction from the stock's follow-through technical rebound momentum.
"Should resistance level of RM1.18 be broken with persistent buying interest, it may continue to lift price higher to subsequent resistance levels of RM1.20 and RM1.24.
"However, failure to hold on to support level of RM1.09 may indicate weakness in the share price and hence, a cut-loss signal," Lee said.