Luxchem Corp Bhd (-ve)
SHARES in Luxchem Corp Bhd (fundamental: 2.1/3, valuation: 2.1/3) triggered our momentum algorithm yesterday for the sixth time this year. The stock closed four sen or 1.83% at RM2.23 yesterday, giving it a market capitalisation of RM623.47 million.
Luxchem saw 1.53 million shares, equivalent to 0.55% of its share capital, traded yesterday, which exceeded its average 200-day volume of 256,226 units.
Last Friday, AmInvestment Bank Bhd initiated a coverage of the industrial chemical supplier with a “buy” call and a target price of RM2.74 per share. Describing Luxchem as a diamond in the rough, the investment bank said the industrial chemical supplier consistently generated sufficient and excess cash flow from operations. It said Luxchem’s sound financial standing, coupled with its cash-generative business, further supported its “buy” conviction.