Ornapaper Bhd (+ve)
SHARES in Ornapaper Bhd (fundamental: 1/3, valuation: 2/3) triggered our algorithm yesterday for the fourth time this year, closing up four sen or 3.17% at RM1.30. The stock saw 1.37 million shares traded, above its 200-day average volume of 53,667.5 shares.
Ornapaper’s net profit for the first financial quarter ended March 31, 2017 (1QFY17) grew 107.29% to RM2.79 million or 3.76 sen per share, from RM1.35 million or 1.81 sen per share in 1QFY16, underpinned by an increase in turnover. Quarterly revenue rose 15.37% to RM71.52 million from RM62 million a year ago, due to stronger demand from customers.
The group manufactures and supplies corrugated boards and carton for packaging. On prospects, the group continues to operate under intense competition and foresees a reasonable performance for the financial year ending Dec 31, 2017 (FY17) compared with FY16, with the business strategies implemented.
At its current share price, Ornapaper is trading at 0.67 times its book value.