This article first appeared in The Edge Financial Daily, on October 13, 2015.
TECK GUAN PERDANA BHD (-ve)
TECK Guan (Fundamental: 1.15/3, Valuation: 0.9/3) triggered our momentum alert for the first time yesterday. The stock rose 29.5% to a 1-year high of RM1.36, prompting an unusual market query from Bursa Malaysia.
Based in Sabah, the company is mainly involved in the cultivation of oil palms as well as the extraction and sale of crude palm kernel oil. It also plants and processes cocoa and cocoa products.
As of end-January, all oil palm planted areas have attained maturity, with an average crop age of 13 years.
For 1HFYJan2016, net profit more than doubled to RM5.4 million despite a 6.0% decrease in revenue to RM120.3 million, thanks to higher operating margins from the palm oil products segment and favourable foreign exchange rates.
The company has not paid dividends since 2006. At end-July, net debt stood at RM3.6 million — or a net gearing of 4.5%.
The stock trades at a trailing 12-month P/E of 32.2 times and 0.52 times book.