Kawan Food Bhd (-ve)
SHARES in Kawan Food Bhd (fundamental: 3/3, valuation: 0.7/3) closed up 3.79% or 18 sen at RM4.93 yesterday. The counter recorded 141,600 shares traded, not far from its 200-day average volume of about 160,003 shares.
Kawan Food’s net profit in the first quarter ended March 31, 2017 (1QFY17) rose 24.7% to RM5.45 million from RM4.37 million, on lower foreign currency loss, which amounted to RM100,000 compared with RM3.3 million in 1QFY16. The group noted that the achievement was, however, offset by higher material prices as well as advertisement and promotional expenses during the quarter under review. Quarterly revenue came in at RM47.51 million, up 14.5% from the RM41.51 million recorded a year earlier.
Looking ahead, Kawan Food said the construction of the new plant on Pulau Indah is progressing according to the revised schedule and is expected to be in operations in the second half of the year.
At the current share price, Kawan Food is trading at 4.42 times its book value.