This article first appeared in The Edge Financial Daily on November 27, 2019

Kotra Industries Bhd (-ve)

SHARES in pharmaceutical and healthcare group Kotra Industries Bhd (fundamental: 1.9/3, valuation: 2/3) have been steadily climbing since the start of the year, gaining 33% year-to-date.

Yesterday, the counter rose six sen or 2.73% to close at an all-time high of RM2.26. The stock is trading at 1.85 times its net asset value.

For its fourth quarter ended June 30, 2019, its net profit rose 17% to RM6.53 million from RM5.57 million a year earlier, as the group saw higher tax expenses in the previous year, while revenue fell 10% year-on-year to RM39.8 million. The fall in revenue fall was due to a decline in sales to local markets for all product ranges and lower sales of health supplement products to export markets.

For the full financial year, the company’s net profit grew 41% to RM22.2 million from RM15.75 million, while revenue fell 3%to RM172.55 million.