Stock With Momentum: BP Plastics

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This article first appeared in The Edge Financial Daily, on January 6, 2016.


BP Plastics Holding Bhd (-ve)

SHARES of BP Plastics (Fundamental: 2.5/3, Valuation: 1.7/3) saw active trading yesterday, rising by 4.55% to close at RM1.84.  Some 3.1 million shares changed hands, compared to its average 200-day trading volume of 0.4 million shares.

BP Plastics was last featured in ‘Stocks with Momentum’ back in October 9, 2015 and had risen by 31.4% ever since. The company is one of the leading producers of industrial plastic packaging bags and stretch film in the country. 

For 3Q2015, revenue fell 5.6% y-y to RM202.4 million, hurt by weakened domestic demand following the implementation of GST. Net profit, however, grew by 76.0% to RM13.8 million, thanks to better product mix and higher process efficiencies.

The company pays dividend consistently. The dividend totalled 5 sen per share for 2015, giving a dividend yield of about 2.7%.

As at end-September, the company had net cash of RM42.0 million.