Stock With Momentum: B.I.G. Industries Bhd (+ve)

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This article first appeared in The Edge Financial Daily, on February 23, 2016.


B.I.G. Industries Bhd (+ve)

Shares of B.I.G. (Fundamental: 0.8/3, Valuation: 0.9/3) have risen a cummulative 8.4% since it released its results for the fourth quarter ended Dec 31, 2015 (4QFY16) last Monday. The stock closed down 0.7% at 71 sen yesterday.

For the 12 months ended Dec 31, 2015 (12MFY16), B.I.G. returned to the black with a net profit of RM2.4 million, compared to a net loss of RM6.3 million a year ago. The increase was attributed to higher contributions from its gas and property divisions. Revenue, however, fell 15.4% year-on-year to RM67.4 million.

The company changed its financial year end from Dec 31 to June 30 last June.

B.I.G is primarily involved in the manufacturing & trading of concrete products and industrial gases. These divisions accounted for 42% and 45.8% of 12MFY16 revenue respectively. The company also has interests in property development and construction.

The stock trades at a trailing 12-month P/E of 14.2 times and 0.8 times book.