Lee Swee Kiat Group Bhd (+ve)
Shares in Lee Swee Kiat Group Bhd (fundamental: 2.1/3, valuation: 1.7/3) triggered our momentum algorithm last Friday for the third time this month.
The stock closed one sen or 1.42% higher at 71.5 sen, giving it a market capitalisation of RM119.08 million, after 3.75 million shares crossed.
The mattress and bedding manufacturer reported a 15% increase in its net profit to RM6.03 million for the financial year ended Dec 31, 2017 (FY17), from RM5.24 million in the previous year, on the back of a 17% rise in revenue to RM74.93 million from RM64.20 million.
It attributed the increase in profit to higher sales across both domestic and export markets, as well as lower depreciation charges as certain property, plant and equipment had been fully depreciated in FY16 but continued to be used in FY17.
The group had also announced a new dividend policy earlier this month, pledging to pay no less than 30% of its consolidated profit after tax from FY17 onwards, in the form of cash or share dividend in equivalent market value.