Stock With Momentum: Fibon

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This article first appeared in The Edge Financial Daily, on January 6, 2016.


Fibon Bhd (+ve)

SHARE price of Fibon (Fundamental: 1.95/3, Valuation: 1.4/3) continued to rise yesterday, despite the absence of new material announcements. The stock closed 5.4% higher at 78.5 sen, with 6.4 million shares changing hands. In comparison, its average 200-day trading volume was just 208,467 shares.

Fibon is primarily involved in the manufacturing and trading of electrical insulators, electrical enclosures, switchboard equipment parts and meter boards. In FYMay2015, export — including to Singapore and Australia — accounted for 72.8% of sales.

For 1QFY2016, net profit more than doubled to RM1.9 million despite flattish revenue, thanks to higher forex gains of RM1.3 million.

Fibon has been increasing its dividend payout, from 25.0% in FY2013 to 28.2% in FY2015. For FY2015, the company paid a final dividend of 1.05 sen, which translates to a yield of 1.3% at current price.

The stock trades at a trailing 12-month P/E of 15.5 times and 1.8 times book.