This article first appeared in The Edge Financial Daily, on March 9, 2016.

Poh Kong Holdings Bhd (-ve)

SHARES of Poh Kong (Fundamental: 0.85/3, Valuation: 1.4/3) were heavily traded with 2.1 million shares changing hands yesterday, in comparison to its 200-days average volume of 409,943. At closing bell, the stock closed 0.88% or 0.5 sen higher at 57.5 sen.

Poh Kong saw its shares dropped to a low of 47.6 sen from 51.5 sen at the end of January before climbing to the current level. This was despite the lack of any new announcement.

In its 1QFY16 results, the group saw its net profit fell 89.12% to RM336,000 from RM3.09 million a year ago due to the decrease in sales volume. Revenue dropped 11.17% to RM172.3 million from RM194 million in 1QFY15. The quarter’s performance was hurt by weak market sentiment.

The group is expected to release its 2QFY16 results by the end of this month. At current level, it is trading at a trailing price-to-earnings ratio of 21.4 times and half of its book value.