Comfort Gloves Bhd (+ve)
SHARES in Comfort Gloves Bhd (fundamental: 2.6/3, valuation: 1.2/3) closed 8.33% or seven sen higher at 91 sen yesterday, with about 20.21 million shares traded, compared with their 200-day average volume of about 1.51 million shares.
Comfort Gloves returned to the black in the first financial quarter ended April 30, 2017 (1QFY18) with a net profit of RM10.15 million versus a net loss of RM9.44 million a year earlier. The previous loss was due to a fire outbreak incurred at a subsidiary in March 2016, which cost the company RM12.8 million in write-offs. Its 1QFY18 revenue came in at RM93.7 million, 79.16% higher from the RM52.3 million recorded in 1QFY17, when the group’s operations were also affected by the fire.
On the outlook, Comfort Gloves said it anticipates challenging market conditions on the back of volatile prices of rubber.
At the current share price, Comfort Gloves is trading at 2.17 times its book value.