TURBO-MECH BHD (-ve)
BASED in Singapore, Turbo-Mech (Fundamental: 1.95/3, Valuation: 2.4/0) is a regional distributor of rotating equipment such as pumps, compressor and turbines for the oil, gas and petrochemical industry.
Its share price has risen by 44.6% since reaching a low of 92 sen on January 9, tracking the recovery of crude oil prices. The stock ended 8.1% higher at RM1.33 yesterday.
On March 25, 2015, Turbo exercised an option to purchase a property in Joo Koon Circle, Singapore.
The acquisition, at RM21.35 million, is to expand its workshop capacity.
For 2014, net profit surged 45.3% y-o-y to RM14.3 million on the back of a 23% increase in revenue to RM47.2 million, mainly due to higher contribution from Singapore operation.
The stock trades at a trailing 12-month P/E of 9.3 times and 1.54 times book. Dividends totalled 5 sen per share for 2014 (ex-entitlement on June 5), giving a net yield of 4.1%.
This article first appeared in The Edge Financial Daily, on May 19, 2015.