This article first appeared in The Edge Financial Daily, on March 24, 2016.
Kanger International Bhd (-ve)
SHARES of Kanger (Fundamental: 1.9/3, Valuation: 1.7/3) ended the day 3.3% lower at 14.5 sen, with 13.6 million shares changing hands.
China-based Kanger is principally involved in the trading of bamboo flooring and related products under the brands ‘Kanger’ and ‘KAR Masterpiece’. Listed in 2013, Kanger has been growing: revenue increased from RM14.8 million in FY10 to RM66.7 million in FY14, while net profits rose from RM 969,000 to RM7 million over the same period.
For FY15, revenue declined marginally by 0.6% to RM66.3 million from RM66.7 million a year ago while net profit jumped 38.9% year-on-year to RM9.7 million. The company attributed the improved earnings to a net unrealised gain on foreign exchange of RM5.1 million as a result of currency differences on inter-company balances.
The stock trades at a trailing 12 month P/E of 9.3 times and 0.94 times book value. No dividend was declared for the past three years.