Asia Poly Holdings Sdn Bhd (+ve)
ASIA Poly (Fundamental: 0.55/3, Valuation: 0.5/3) rose as much as 3.2% in early trading last Friday. However, the stock ended unchanged at 63 sen as volume dropped.
On July 1, Lim Dan Qi, an Executive Director of Asia Poly, announced her resignation. She is part of the Lim family, who have disposed of their entire 27.6% stake in Asia Poly to Yeo Boon Leong, back in April 2015. Yeo subsequently became the company’s executive chairman.
Based in Klang, Asia Poly manufactures cast acrylic sheets, which are used for back-lit lighting applications such as signboards and lighting displays. Net margins have been razor-thin, ranging from 0.9-1.8% for FYMar2012-FY2014, due mainly to fierce competition from other low-cost countries.
For FY2015, net profit increased 4.1% to RM0.7 million on the back of a 14.3% revenue growth to RM78.4 million. It has proposed a final dividend of 0.5 sen.
This article first appeared in The Edge Financial Daily, on July 6, 2015.