Thursday 25 Apr 2024
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Box-Pak (Malaysia) Bhd (-ve)

SHARES of Box-Pak (Fundamental: 0.6/3, Valuation: 1.7/3) rose to a one-year high of RM2.44 on Tuesday, before retracing to close at RM2.41 yesterday. Volume traded was 18-times the past 200-day average of 8,198 shares.

Its latest 1Q2015 earnings results are encouraging. Revenue rose 20.9% y-o-y to RM96.1 million while net profit soared more than five-folds to RM2.5 million, thanks to increased demand in Vietnam and the strengthening of Vietnamese Dong against ringgit.

Box-Pak, a 54.8% subsidiary of Kian Joo Can Factory, mainly manufactures and distributes paper boxes and cartons with operations in Vietnam and Malaysia. From 2012 to 2014, the company’s net profit has been declining, despite healthy revenue growth. This was mainly due to high startup costs and initial losses at its new Hanoi and Johor plants. 

The stock trades at a trailing 12 months P/E of 14.8 times at 0.93 times book. The company last paid a 7.5 sen dividend for 2013.

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

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