Luxchem Corp Bhd (+ve)
SHARES in Luxchem Corp Bhd (fundamental: 2.1/3, valuation: 2.4/3), which is engaged in marketing and distribution of industrial chemicals and materials, triggered our proprietary momentum algorithm last Friday for the first time this month.
The stock closed 14 sen or 8.48% higher at RM1.79, with 2.2 million shares changed hands, exceeding its 200-day average volume of 162,131.5 shares.
In the first quarter ended March 31, 2017 (1QFY17), Luxchem’s net profit almost doubled to RM13.61 million from RM7 million a year earlier.
The group attributed the improved earnings mainly to higher contribution from the trading and manufacturing segments.
Revenue grew 36.4% to RM218.13 million from RM159.97 million in 1QFY16, mainly on increased contribution from the trading division. Luxchem did not propose any dividend for the quarter under review.
At the current share price, Luxchem is trading at 2.01 times its book value.