C.I. HOLDINGS BHD (-ve)
C.I. HOLDINGS (Fundamental: 1.85/3, Valuation: 0.2/3) saw its share price rise as much as 5.8% on Wednesday, ahead of the announcement of 3QFYJune2015 earnings results. The stock closed 1.3% higher at RM2.38 yesterday.
For 3QFY2015, C.I. returned to the black with a net profit of RM2.2 million compared to a net loss of RM2.1 million in 3QFY2014, mainly due to the edible oil division.
To recap, C.I. completed the acquisition of Continental Resources Sdn Bhd (CRSB), a company involved in the manufacturing and trading of edible oil, last year. It paid RM42 million for CRSB, via RM20 million cash and issuance of 20 million new shares at RM1.10.
C.I. also manufactures and distributes tap and sanitary ware. It has a strong balance sheet with net cash of RM54.0 million or 33.3 sen per share.
However, the stock appears expensive at a price-to-book of 2.8 times. No dividends were paid for FY2013-FY2014.
This article first appeared in The Edge Financial Daily, on May 8, 2015.