Cycle & Carriage Bintang Bhd (-ve)
Cycle & Carriage (Fundamental: 1.7/3, Valuation: 1.1/3) surged as much as 5.2% in early trading last Friday after it posted a strong set of 2Q2015 earnings results. However, the stock closed down 1.7% to RM3.40.
For 2Q2015, net profit jumped more than ten-fold y-o-y to RM21.8 million on the back of a 104.3% revenue growth to RM472.4 million. Cumulative 1H2015 revenue rose 76.1% to RM735.5 million while net profit increased more than seven-fold to RM28.5 million, due mainly to a 46% growth in unit sales, improved margins and dividend income from Mercedes Benz Malaysia.
Cycle & Carriage is Malaysia's largest dealer of Mercedes-Benz motor vehicles. It is also involved in retailing of motor vehicles and spare parts, servicing vehicles, and providing general insurance services.
It has recently started a programme of upgrades to existing facilities. The company also expects to open a new Autohaus in Cheras, Kuala Lumpur by end-2015.