This article first appeared in The Edge Financial Daily on March 5, 2020
Kanger International Bhd (-ve)
TRADING of shares in Kanger International Bhd (fundamental: 0.85/3, valuation: 0.3/3) triggered our momentum algorithm yesterday for the fourth time this year.
The stock closed 0.5 sen or 4% lower at 12 sen. It saw 14.9 million shares traded, over five times higher than its 200-day average volume of 2.52 million shares.
Kanger posted a net profit of RM4.84 million for the fourth quarter ended Dec 31, 2019 (4QFY19), compared to a net loss of RM4.54 million for 4QFY18, despite revenue dipping slightly to RM15.69 million from RM15.7 million. The improved earnings were mainly due to the recognition of a RM5.2 million cash incentive from the Jingzhou local authority for the group’s continued investment there.
For full FY19, the group returned to the black with a net profit of RM8.82 million.
The group said it had identified a series of growth strategies which include relocating its new bamboo plant in Jingzhou and expanding bamboo product offerings and diversifying to include property leasing.