Stock With Momentum: Asdion

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Asdion Bhd (-ve)

Shares of software solutions provider, Asdion (Fundamental: 0.95/3, Valuation: 0/3), have risen a hefty 64.1% since April 28, after announcing its diversification into logistics sector with the acquisition of a 51% stake in TAZ Logistics Sdn Bhd for RM6 million. The stock closed 5.4% higher at RM1.37 yesterday.

On June 2, Asdion secured a US$112 million (RM412 million) deal to provide logistics services to a Hong Kong-based commodities trader. Through its wholly owned subsidiary, Asdion will deliver 4 million tonnes of bauxite for a base price of US$28.00 per tonne for two years, starting July. 

Asdion has been loss making from FYMarch2010-FY2015. For the latest FY2015, net loss narrowed to RM2.1 million, from RM3.1 million a year ago. Meanwhile, sales rose 13.0% to RM4.9 million, due mainly to higher contribution from the newly acquired logistics business.

The stock is trading at 7.73 times book. No dividend was paid for the last five years.

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This article first appeared in The Edge Financial Daily, on June 17, 2015.