This article first appeared in The Edge Financial Daily on June 19, 2017
KYM Holdings Bhd (+ve)
SHARES in KYM Holdings Bhd (fundamental: 0.55/3, valuation: 0.3/3) triggered our algorithm last Friday for the second time this year and closed up six sen or 9.38% at 70 sen.
The stock saw 4.54 million shares traded, above its 200-day average volume of 174,915.5 shares.
Its final quarter ended Jan 31, 2017 (4QFY17) net profit grew 296% to RM1.5 million from RM390,000 in 4QFY16, due to improved profit from wholly-owned Hasrat Meranti Group and a reduction in interest cost incurred on term loans. Revenue inched up 1% to RM24.8 million from RM24.6 million.
For FY17, KYM turned a net profit of RM635,000 compared to a net loss of RM1.2 million a year ago, while revenue fell 3% to RM96 million from RM99.2 million.
Recently, it has partnered with Swedish paper manufacturer BillerudKorsnäs AB to manufacture and distribute up to 80 million industrial sacks annually in Southeast Asia.
At its current share price, KYM is trading at 1.14 times its book value.