RUBBEREX CORPORATION (M) BHD (-ve)
Rubberex (Fundamental: 1.4/3, Valuation: 2.6/3) saw renewed trading interest after declaring an interim dividend of 1.5 sen per share, despite posting marginally weaker 1Q2015 results. The stock ended 3.6% higher at 73 sen yesterday.
Rubberex manufactures and sells natural rubber, synthetic rubber and vinyl gloves, with production facilities in Malaysia and China. The company exports its products to over 100 countries.
Earnings for the company have been erratic over the years. Net profit increased from RM6.6 million in 2010 to RM22 million in 2012, before dropping to only RM418,000 a year later. In 2014, Rubberex turned in a net profit of RM10.1 million while revenue fell 8.9% to RM296.4 million.
The company has completed the first phase of expansion at its Malaysian factory to include new production lines for nitrile disposable gloves. It has also started operations since early 2015.
The stock trades at a trailing 12-month P/E of 15.7 times and 0.78 times book.
This article first appeared in The Edge Financial Daily, on May 22, 2015.