Stock With Momentum: Ajiya

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This article first appeared in The Edge Financial Daily, on October 6, 2015.


Ajiya Bhd (-ve)

SHARES of little-known Ajiya (Fundamental: 2.1/3; Valuation: 2.0/3) continued to rise despite absence of fresh news. The stock – picked by our momentum algorithm for the third time this month — closed 7.7% higher at RM3.34 yesterday. 

Investors are probably expecting better 3QFYNov2015 earnings results for Ajiya, due by the end of this month, following solid 1HFY2015 performance.

For 1HFY2015, revenue increased 6.4% y-o-y to RM216.5 million while net profit jumped 29.2% to RM10.8 million, due mainly to improvement in profit margin of certain products.

To recap, Johor-based Ajiya manufactures and sells safety glass and metal roll-forming products used in the construction and building industries. Approximately 95% of its FY2014 sales were from the domestic market with the balance from Thailand.

In May, Singapore-based fund manager Yeoman Capital Management Pte Ltd emerged as a substantial shareholder with a 5.1% stake. It has since increased its holdings to 5.8%.