Caring Pharmacy Group Bhd (-ve)
CARING (Fundamental: N/A, Valuation: N/A) triggered our momentum alert for the sixth time since September 2, rising 31.1% during the period.
The rally in its share price was halted by an unusual market activity query by Bursa Malaysia on September 4. Nevertheless, the stock resumed its upward momentum, rising to an intraday high of RM1.82 before ending down 1.7% to RM1.76 last Friday.
Caring is primarily involved in the retail of pharmaceutical, healthcare and personal care products. It is the only locally listed (in 2013) pure retail pharmacy chain with 104 community pharmacies throughout Peninsular Malaysia.
For the full year FY2015, revenue rose 8.4% to RM366.7 million, boosted by nine new outlets opened during the financial year. Net profit, however, declined 14.7% to RM12.9 million, due mainly to higher operating expenses, start-up costs for new outlets and stiff price competition.
The stock trades at a high trailing 12-month P/E of 30.3 times and 3.3 times book.
This article first appeared in digitaledge Daily, on September 14, 2015.