CCM Duopharma Biotech Bhd (+ve)
SHARES in CCM Duopharma Biotech Bhd (fundamental: 1.3/3, valuation: 1.4/3) triggered our proprietary momentum algorithm for the fifth time this year. Currently trading at about 1.89 times its book value, some 1.88 million shares were traded yesterday, exceeding the counter's 200-day average volume of 315,647 shares.
On Wednesday, CCM completed the issuance of 371.94 million new bonus shares on the Main Market.
Recently the group secured a revolving credit-i murabahah of US$20 million (RM80.2 million) from Oversea-Chinese Banking Corp Ltd to finance its acquisition of a 8.39% stake in South Korea-based PanGen Biotech Inc. Apart from financing the proposed acquisition, the revolving credit facility will be utilised for general working capital requirement and other investments.
For the first quarter ended March 31, 2018, group net profit rose 25.11% to RM10.78 million, from RM8.62 million a year earlier, on higher demand for pharmaceutical products. Revenue rose to RM133.26 million from RM120.99 million.
The counter closed six sen or 4.11% lower to RM1.40 yesterday, with a market capitalisation of RM911.26 million.