This article first appeared in The Edge Financial Daily, on December 18, 2015.
Tek Seng Holdings Bhd (-ve)
PVC and solar products manufacturer Tek Seng (Fundamental 0.6/3, Valuation: 0.8/3) triggered our momentum algorithm yesterday, closing 4.9% to its all-time high of 96 sen.
There appears no significant development recently save for earnings announcement on November 5. For 3Q2015, revenue surged 63.5% y-y to RM99.3 million while net profit jumped 183% to RM5 million, largely due to higher contribution from the solar division.
Penang-based Tek Seng is primarily involved in manufacturing and trading of polyvinyl chloride (PVC) and polypropylene (PP) non-woven related products. The company also has interest in manufacturing and trading of solar related products such as solar cells and solar panels.
In 2014, the PVC division contributed 79.6% of total sales with the remainder coming from the solar division. Geographically, Tek Seng derived 54.6% of its 2014 sales from export markets.
Moving forward, the company has earmarked RM23.1 million for capital expenditure.