Stock With Momentum: Denko Industrial Corporation


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Denko Industrial Corporation Bhd (+ve)
SHARES of Denko (Fundamental: 0.8/3, Valuation: 0.9/3) have risen by 57.8% since it was first picked by our momentum algorithm on March 31. The stock closed unchanged at 41 sen yesterday.

On Monday, the company appointed Dr Loh Yee Feei as Executive Director, following his appointment as CEO in May. Loh, formerly the Executive Director of GPA Holdings from 2011-2014, has over 30 years of business and management experience in manufacturing-based industries.

Johor-based Denko operates in two segments: manufacturing of plastic injection moulding and high precision plastic parts; and wholesaling of foodstuff and consumer goods. Over the past five years, it alternated between profit and loss.

The company returned to the black in FYMar2015 with a net profit of RM3.1 million, thanks to higher contribution from the manufacturing segment, especially the plastic parts sub segment. Gearing stood at 21.2%, down from 60.2% in FY2012.