Stock With Momentum: Careplus Group

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This article first appeared in The Edge Financial Daily, on March 16, 2017.


Careplus Group Bhd (-ve)
SHARES in Careplus Group Bhd (fundamental: 0.55/3, valuation: 0.6/3) triggered our momentum algorithm for the first time since 2015. The counter closed 2.5 sen or 8.9% at 30.5 sen higher yesterday, with some 11.42 million shares traded. In comparison, its 200-day average volume is only around 1.14 million shares.

The glove maker posted a net profit of RM1.79 million in the fourth quarter ended Dec 31, 2016 (4QFY16), an increase of 23.45% from RM1.45 million a year earlier, on higher revenue and lower expenses. Revenue rose 38.13% to RM69.44 million from RM50.27 million, on higher sales from additional production capacity.

For the full year, its net profit slumped 97.35% to RM159,000 from RM6 million a year ago. Careplus explained the ongoing expansion projects and high commissioning costs were among the factors which impacted the group’s performance. Revenue for FY16 grew 20.59% to RM229.44 million from RM190.26 million.