Stock With Momentum: Jadi Imaging Holdings

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


Jadi Imaging Holdings Bhd (+ve)

Shares of Jadi Imaging (Fundamental: 1.15/3, Valuation: 0.9/3) rose as much as 20% to an intraday high of 12 sen last Friday, after releasing strong financial results for the three months ended Dec 31, 2015. The stock closed at 11 sen, with over 55.01 million shares traded. Its market capitalisation stood at RM103.6 million.

The company swung back to a net profit of RM4.74 million in the quarter compared with a net loss of RM2.94 million a year ago. The increase is attributed to improved productivity, cost savings from in-house produced resin, and foreign exchange gains of RM448,000.

For the quarter, revenue grew 56.1% year-on-year to RM22.04 million from RM15.13 million, boosted by higher sales of black and colour toner as well as the weaker ringgit.

Jadi Imaging is mainly involved in the development, formulation and manufacturing of toners for laser printers, photocopiers, facsimile machines and multi-function office equipment. In 2014, exports, to more than 55 countries, contributed more than 98% to revenue.