Stock With Momentum: Ipmuda

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IPMUDA BHD (+ve)
SHARES of Ipmuda (Fundamental: 0.6/3, Valuation: 2/3) increased 2.01% to close at RM1.52 yesterday, after the company announced its 1Q2015 earnings results. Volume traded jumped to 978,600 shares, over 18 times the past 200-day average volume of 53,693 shares.

Despite a slight decline in revenue to RM165.73 million, net profit more than doubled to RM5.37 million, mainly due to a net gain of RM5.23 million from the disposal of a subsidiary’s factory.

In a further announcement, the company stated that it would continue to pursue overdue debts, since 2007, although impairment losses of RM14.38 million have already been fully recognized. The debts are owed by both related and non-related parties.

Ipmuda mainly distributes and supplies building materials, architectural hardware and home improvement materials. It is also a specialist contractor and property developer.

The stock trades at a trailing 12-month P/E of 7.76 times, at 0.65 times book.

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This article first appeared in The Edge Financial Daily, on May 20, 2015.