Oceancash Pacific Bhd (+ve)
SHARES in resinated felt and non-woven fabric maker Oceancash Pacific Bhd (fundamental: 2.8/3, valuation: 0.8/3) triggered our proprietary momentum algorithm yesterday for the first time this year.
The stock closed unchanged at 66 sen, giving it a market capitalisation of RM146 million. A total of 2.56 million shares were done, almost five times its 200-day average volume of 515,808 shares.
Oceancash saw its net profit jump 23.5% to RM2.49 million in the first quarter ended March 31, 2018 (1QFY18) from RM2.02 million a year ago, on lower provision for taxation on unrealised foreign exchange differences and lower finance expenses.
Quarterly revenue also rose 1.5% to RM22.26 million in 1QFY18 from RM21.92 million in 1QFY17, mainly due to an increase in sales of the hygiene division to the Thailand and Malaysia markets. As for its felt division, there was a slight drop in sales to the automotive sector in Malaysia and Indonesia.
At the current share price, Oceancash is trading at 1.78 times its book value.