Spring Gallery Bhd (-ve)

Spring Gallery (SGB) (Fundamental: 2.4/3, Valuation: 0.3/3), formerly known as PFCE Bhd, is involved in the manufacturing, trading and exporting of ceramic garden ware and household pottery items.

The stock first triggered our momentum alert on May 12 at 64 sen. Since then, it fell to a low of 57 sen before rising to a one-year high of 69 sen yesterday. 

SGB is likely to benefit from the stronger USD, as the company exports almost all its products. The US accounted for 76.6% of its sales for 9MFYJun2015. 

For 9MFY15, the company posted revenue of RM19.9 million and net profit of RM3.7 million, boosted by higher export sales. 

SGB is in the process of consolidating its properties in Perak and Penang, with net book value totalling RM26.1 million. This comes after it exited the oil and gas business in May 2014, following a fire explosion at its plant.

The stock trades at 1.97 times book.

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This article first appeared in The Edge Financial Daily, on June 17, 2015.