Stock With Momentum: Golden Pharos

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This article first appeared in The Edge Financial Daily, on December 18, 2015.

 

Golden Pharos Bhd (-ve)

TERENGGANU-based Golden Pharos (Fundamental: 0.95/3, Valuation: 0.9/3) triggered our momentum algorithm for the first time yesterday. The stock jumped 3.6% to close at 43.5 sen.

Golden Pharos is primarily involved in the harvesting, sawmilling and kiln drying of timber along with the manufacturing and trading of glass. The former accounted for 65.4% of 9M2015 revenues while the latter contributed the balance.

For 3Q2015, Golden Pharos returned to the black with a RM2.7 million net profit compared to a RM0.1 million loss a year earlier. This came on the back of a 20.5% y-y rise in revenue to RM23.1 million, which was driven by its timber operations. 

However, the company’s glass manufacturing segment suffered a 16% drop in revenues, mainly due to the slowdown in the medium and high-end housing sector. 

The Terengganu state government owns a 64.2% stake in Golden Pharos via its state investment arm, Terengganu Incorporated Sdn Bhd.

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