This article first appeared in The Edge Financial Daily on July 7, 2017

Pecca Group Bhd (+ve)

SHARES in Pecca Group Bhd (fundamental: N/A, valuation: N/A), which is involved in the manufacturing and installation of leather upholstery for cars and aircraft, closed four sen or 2.47% higher at RM1.66 yesterday. The counter saw 1.58 million shares traded, exceeding its 200-day average volume of 324,083 shares.

The company, listed in April 2016, reported that its net profit dipped 25% to RM2.31 million in the third financial quarter ended March 31, 2017, from RM3.08 million a year ago, mainly due to a lower revenue and sales mix. Quarterly revenue fell 6% to RM25.28 million from RM27 million, mainly due to lower car-seat-cover sales in the local original equipment manufacturer and pre-delivery inspection segment.

For the nine months ended March 31, 2017, its net profit grew a marginal 2% to RM11.94 million from RM11.66 million, while revenue slipped 3% to RM90.4 million from RM92.72 million.

At the current share price, Pecca Group is trading at 1.93 times its book value.