This article first appeared in The Edge Financial Daily, on February 22, 2016.

Imaspro Corporation Bhd (+ve)

SHARES of Imaspro (fundamental: 1.45/3, valuation: 1.4/3), a Klang-based manufacturer and distributor of herbicides, pesticides and agrochemicals, rose 1 sen or 0.52% to close at RM1.95 with 412,700 shares traded on Friday. Its market capitalisation was RM156 million.

Export sales, mostly to Indonesia, Bulgaria, Vietnam, Russia and Australia, accounted for about half of its revenue in the financial year ended June 30, 2015 (FY15).

For 2QFY16, revenue declined 9% year-on-year to RM23.05 million, while net profit fell 33% to RM1.64 million, mainly due to a 22% decrease in domestic sales and lower sales margins. With minimal borrowings, Imaspro is sitting on a net cash position of RM64.1 million, equivalent to 41.3% of its market cap.

The stock currently trades at a trailing 12-month P/E of 15.5 times and 1.25 times its book value. Excluding net cash, trailing 12-month P/E stood at a modest 9.1 times. Dividend was consistently 3.5 sen per share for the past five years, translating into a yield of 1.8%.