Xian Leng Holdings Bhd (-ve)

JOHOR-based Xian Leng (Fundamental: 1.35/3, Valuation: 0.9/3), an ornamental fish breeder, saw its share price increase 2.6% to close at a 3-year high of 60 sen last Friday.  

The rarely traded stock — which has been range bound between 25.5 sen and 42 sen prior to the recent rally — has risen by 69.0% since June 1.

The company has been in the red since FYJan2009, but returned to the black in FY2015 with a small net profit of RM503,465. It has a net debt of RM605,000, down from 10.4 million in FY2013.

For 1QFY2016, revenue fell 13.9% y-o-y to RM2.7 million, owing to lower production and sales volume. However, Xian Leng chalked up a net profit of RM31,000, compared to a net loss of RM191,000 in 1QFY2015, primarily due to increased sales of higher grade Arowana fishes. 

The stock trades at a trailing 12-month P/E of 58.37 times and 0.9 times book.

This article first appeared in The Edge Financial Daily, on July 6, 2015.