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.


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