This article first appeared in The Edge Financial Daily, on April 14, 2016.

Plastrade Technology Bhd (+ve)

SHARES of Plastrade Technology Bhd (Fundamental: 1.25/3, Valuation: 1.1/3) triggered our momentum algorithm for the first time, with 4.18 million shares changed hands, in comparison to its’ 200-days average volume of 451,247 shares.

Plastrade saw its share price jump 6.45% to close at 16.5 sen yesterday, and has surged by 17.9% since December 31, 2015. There was no new announcement except for the proposed renewal of share buy-back on April 4.

The group manufactures compounds for power cables through its 100% subsidiaries, MHT Manufacturing Sdn Bhd and Plascable Polymer Sdn Bhd.

Its recently announced fourth quarter’s earnings results for financial year ended December 2015 saw the group registered a net profit of RM67,000 from a net loss of RM121,000 in the same quarter a year ago. Plastrade’s revenue rose 46.5% to RM15.9 million in 4QFY15 from RM10.9 million in the corresponding quarter a year ago.

The full year 2015 also saw the group return into black with a net profit of RM1.55 million after a disappointing FY14 with a net loss of RM147,000. Its revenue increased 9.02% to RM56.2 million in FY15 from RM51.6 million in FY14.

In its filing with Bursa, Plastrade attributed the profit to the higher demand for the group’s products, lower cost of sales and foreign exchange gain for the period.

Looking ahead, the board of directors of Plastrade is “of the view that the group’s financial performance for the financial year ending 2016 will be challenging due to the volatility global economy. The group will still continue to adopt costs saving measures and market the products to new territories to ensure the business of the group remains viable.”

Plastrade is currently trading at a trailing P/E ratio of 16.0 times and is 0.73 times its book value.