Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on July 11, 2017

SAM Engineering & Equipment (M) Bhd (-ve)
SHARES in SAM Engineering & Equipment (M) Bhd (fundamental: 2.5/3, valuation: 1.1/3) triggered our momentum algorithm yesterday for the second time this year.

The counter closed up 22 sen or 2.72% at RM8.32, with 468,300 million shares traded, more than its 200-day average volume of 100,030 shares. Year-to-date, the stock had risen as much as 70% to reach an intraday high of RM8.33 yesterday, from RM4.90.

The company declared a first interim dividend and a special dividend of 10.28 sen per share and 6.95 sen per share respectively for the financial year ended March 31, 2017 (FY17), both payable on Aug 15.

The company’s net profit fell 31% to RM43.61 million in FY17 from RM63.09 million in FY16. Revenue also dropped 13% to RM537.4 million from RM620.05 million in FY16 on lower contribution from the equipment manufacturing segment due to weaker demand from customers.

Going forward, the company expects revenue from its aerospace industry, which accounts for about 58% of revenue, to remain stable. The company also expects revenue from the equipment manufacturing and precision engineering businesses to improve for the next two quarters, on the back of an improving semiconductor industry, except for the personal computer segment.

At the current share price, the company is trading at 2.3 times its book value.

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