PROLEXUS (Fundamental: 2.1/3, Valuation: 1.5/3) was first recommended by InsiderAsia on November 3, 2014. Since then, its share price has soared 125% to close at RM2.60 yesterday. It is likely seen as a beneficiary of stronger USD as export, mainly to the US and Europe, accounts for over 95% of its sales.
For 9MFYJuly2015, revenue increased 12.7% y-o-y to RM230.3 million while net profit rose 12.3% to RM14.4 million, lifted by higher apparel sales and fair value gain on derivative financial instruments.
However, current valuations are not cheap, with trailing P/E of 13.7 times and 2.8 times book. By comparison, peer Magni-Tech is trading at 9.5 times P/E and 1.8 times book.
Prolexus is mainly a contract manufacturer of sport apparels for international brands, primarily Nike and Under Armour. The company also owns a 51.9% stake in HiQ Media (Malaysia) Sdn Bhd, which operates Powerscreen, Malaysia's leading outdoor LED screen advertising company with 14 screens nationwide.