This article first appeared in The Edge Financial Daily on November 26, 2019

Ornapaper Bhd (-ve)

Shares in Ornapaper Bhd (fundamental: 1/3, valuation: 1.4/3) have been climbing since the start of the month for about 24% month to date. Year to date, the company’s share price has increased 25%.

Yesterday, the counter gained nine sen or 8.82% to RM1.11 after some 1.15 million shares were traded, vastly exceeding its 200-day average volume of 53,594 shares.

Ornapaper’s net profit grew 68% year-on-year to RM3.44 million for the third quarter ended Sept 30, 2019, attributed to lower raw material cost. Its revenue for the quarter fell 7.5% to RM81.25 million from RM87.81 million.

For the cumulative nine months, its net profit rose 21% to RM7.89 million from RM6.53 million. Its revenue fell 6% to RM240.67 million from RM256.12 million. Ornapaper is trading at 0.44 times its net asset value.