Tex Cycle Technology (M) Bhd (+ve)
SHARES of Tex Cycle (Fundamental: 2.25/3, Valuation: 0.8/3) rose a cumulative 54.9% last week to close at an all-time high of 79.5 sen last Friday.
The company is involved in waste management services as well as manufacturing and trading of chemical products. It services a wide range of industries, namely electronics, engineering, automobile, oil and gas.
For 1H 2015, revenue increased 15.8% to RM12.8 million while net profit grew 64.4% to RM5.0 million, thanks to higher demand for recycling services and contribution from the new plant. Net cash stood at RM3.4 million or 2 sen per share at end-June.
Management expects increased contribution from its recycling business, following the commencement of its new waste processing plant in 2014. The plant was also granted pioneer status in Feb 2014, with five years of 70% tax exemption on tax payable.
This article first appeared in digitaledge Daily, on September 14, 2015.