This article first appeared in The Edge Financial Daily, on December 29, 2015.

OKA Corporation Bhd (-ve)

OKA (Fundamental: 2.4/3, Valuation: 1.8/3) triggered our momentum algorithm yesterday, closing 2.7% higher at 96 sen. With six plants scattered across Peninsular Malaysia, OKA is a major precast concrete products manufacturer catering to the infrastructure, construction and highway industries. 

There appears no significant development recently save for quarterly results announcement on November 23. For 2QFYMar2016, net profit surged 23% y-y to RM6.2 million despite a 9.8% decline in revenue to RM37.6 million, thanks to favourable sales mix and lower operating expenses.

Concurrently, the company proposed an interim dividend of 1.5 sen per share, which goes “ex” on February 4. Dividends for FY2010-FY2015 ranged from 3 sen to 4 sen, translating into a net yield of 3.1-4.2%.

OKA, one of InsiderAsia’s Top 10 picks, is seen as a beneficiary of proposed infrastructure projects in West Malaysia. The stock currently trades at a trailing P/E of 9.1 times and 1.1 times book.