Stock With Momentum: Asia File Corporation

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This article first appeared in The Edge Financial Daily, on November 25, 2015.


Asia File Corporation Bhd (+ve) 

ASIA File (Fundamental: 3/3, Valuation: 1.4/3) was picked by our momentum algorithm for the second time this month. The thinly traded stock saw higher trading activity since October 29, and has since gained 26.8% to close at RM5.10 yesterday.

This might be due to expectation of favourable 2QFYMar2016 earnings results for the company, which is expected to be released by end-November. Meanwhile, the company’s final dividend of 9 sen per share went ‘ex’ last Monday, bringing total dividends to 15 sen per share for FY2015.

For 1QFY2016, net profit jumped 32.1% y-y to RM19.8 million, due to improved efficiency and the strengthening of GBP and Euro against the ringgit. It has net cash of RM89.4 million or 46.8 sen per share.

Asia File is engaged in the manufacturing of filing and stationery products, including its well-known ‘ABBA’ branded products. Export, mainly to Europe (78.2%), constituted 91.3% of its revenue in FY2015.