Stock With Momentum: Mikro MSC

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MIKRO MSC BHD (-ve)
THE relatively unknown Mikro MSC (Fundamental: 2.55/3, Valuation: 1.5/3) was featured as Insider Asia’s Stock of the Day on November 5, 2014, at 25.7 sen. It has since gained 73.1%, closing at a 3-year high of 44.5 sen yesterday on heavy volume.

There appear no major developments except for earnings announcement on February 13. For 1H2015, revenue rose 27.9% y-o-y to 17.89 million, while net profit grew an outsized 61.8% to RM 4.23 million, thanks to higher demand for its products.

Mikro MSC produces electrical distribution products such as overcurrent and earth fault relays, metering solutions and power factor regulators. These products monitor and prevent damage to electrical equipment by isolating and tripping a circuit breaker when an electrical fault is detected.

The stock trades at a trailing 12-month P/E of 16.1 times and 3.17 times book. Dividends totalled 1 sen (adjusted for bonus issue) for 2014, giving a net yield of 2.4%.

mikro-msc_fd_190515_theedgemarkets

This article first appeared in The Edge Financial Daily, on May 19, 2015.