London Biscuits Bhd (+ve)
TRADING of shares in London Biscuits Bhd (fundamental: 0.25/3, valuation:1.70/3) triggered our momentum algorithm on Monday for the ninth time for the full year of 2018.
It closed up one sen, or 1.6%, at 63.5 sen, bringing a market capitalisation of RM130.29 million.
A total of 6.9 million shares were traded, much higher versus the counter’s 200-day average of 1.58 million shares.
On Nov 30, 2018, the confectionery maker reported a net profit of RM6.66 million for the fourth financial quarter ended Sept 30, 2018 (4QFY18) on revenue of RM98.13 million.
PublicInvest Research, in upgrading its target price for the company to 71 sen in a note dated Dec 3, 2018, said the group’s latest quarterly result beat its expectation, primarily due to lower material costs and better margins from its product mix.
It also raised its earnings estimate for the group’s FY19 and FY20 by an average of 23%, on expectations of steady revenue growth in tandem with higher utilisation and smoother operations from recent upgrading of production facilities.