Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on December 10, 2019

SCGM Bhd (-ve)

SHARES in SCGM Bhd (fundamental: 0.35/3, valuation: 0.6/3) closed 11 sen or 7.59% higher at its 16-month high of RM1.56 yesterday. The stock made it to our Stocks with Momentum list for the third time this year.

At the closing bell, the counter saw some 3.14 million shares traded, significantly higher than its 200-day average trading volume of 397,583 shares.

Yesterday, the thermoform food packaging manufacturer announced that its net profit surge 143.02% to RM4.03 million for the second quarter ended Oct 31, 2019 from RM1.65 million a year ago, though revenue fell 6.79% to RM53.52 million from RM57.43 million.

It attributed the higher earnings to a better sales mix, reduced resin prices, lower interest expense, higher gain on foreign exchange, and higher recovery of doubtful debts.

For the cumulative six-month period, its net profit gained 129.66% to RM6.23 million from RM2.71 million last year, despite revenue slipping 3.57% to RM109.19 million from RM113.23 million.

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