Pensonic Holdings Bhd (+ve)
PENSONIC (Fundamental: 0.35/3, Valuation: 2.4/3) has seen a sharp spike in price since last Monday, rising 13% to 48.5 sen on heavy volume. The company on Monday declared a first interim dividend of 1.5 sen per share for FYMay15, which will go “ex” next Friday. 

Based in Penang, Pensonic manufactures and sells electronic and electrical home appliances. In FY14, it derived 72% of its sales from the domestic market with the balance from other Asian and Middle Eastern countries.

For 9MFY15, revenue increased 4% y-o-y to RM295.5 million while net profit climbed 10% to RM5.0 million, due to higher export sales and improved cost control. Notably, export sales jumped 20% to RM100.3 million, boosted by the weaker ringgit.  

Whilst gearing is high at 85%, bulk of its borrowings is tied to Banker's acceptance — a short-term trade financing facility. The stock trades at a trailing 12-month P/E of 18.7 times and 0.63 times book.

This article first appeared in The Edge Financial Daily, on July 22, 2015.