Stock With Momentum: C.I. Holdings

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This article first appeared in The Edge Financial Daily, on November 25, 2015.


C.I. Holdings Bhd (-ve)

C.I. HOLDINGS (Fundamental: 1.4/3, Valuation: 0.2/3) closed 2.9% lower at RM2.65 yesterday despite announcing robust 1QFYJune2016 earnings results.

For 1QFY2016, revenue grew 197.1% y-y to RM260.1 million while net profit surged more than 11-fold to RM10.1 million. This was due to forex gains totaling RM4.4 million and higher contribution from edible oil products division, which included contribution from its 60%-owned subsidiary Palmtop Vegeoil Products Sdn Bhd (Palmtop). Net cash stood at RM18.3 million or 11.3 sen per share.

In May, C.I. entered into an agreement with Palmtop to acquire 60% stake in the company for RM8.25 million cash. Palmtop is involved in the manufacturing and packing of Refined Bleached Deodorized (RBD) Palm Olein and all types of edible oils.

C.I. is primarily engaged in the trading, manufacturing and packaging of all types of edible oils. The company also manufactures and distributes tap and sanitary ware. The edible oils division accounted for 89.5% of its revenue in FY2015.