Super Enterprise Holdings Bhd (+ve)
SUPER (Fundamental: 2.2/3; Valuation: 1.4/3) saw a surge in trading activity yesterday with 1.1 million shares changed hands, compared to only 168,000 shares a day ago. Its share price has more than doubled to RM3.33 since it was first picked by our momentum algorithm on February 6.
For FYMarch2015, net profit jumped 29.9% to RM9.5 million on the back of a 13.0% revenue growth, boosted by higher demand from its existing customers, improved operational efficiency and favourable USD/MYR rate.
In April, Super received a non-binding indication of interest from Nasdaq-listed Multi-Color Corporation to explore a potential transaction involving its shares. It appears that the latter is still in the midst of a due diligence exercise on the former.
Super manufactures adhesive labels, nameplates and in-mould decorating products with operations in Malaysia, China, Indonesia, Thailand, and Philippines. It has a strong balance sheet with net cash of RM17.3 million or 41.6 sen per share.
This article first appeared in The Edge Financial Daily, on June 18, 2015.