Focus Lumber Bhd (+ve)
Focus Lumber (Fundamental: 1.75/3; Valuation 3/3) gained 10.8% yesterday, with volume surging about ten-fold versus its 5 day-average, after announcing a strong set of fourth quarter results, helped by the strengthening US dollar.

The Sabah-based company manufactures plywood, veneer and lumber products, exporting some 92.5% of sales, with 67% going to US market in 2013.

In 4Q2014, net profit increased 15.5% to RM5.07 million on the back of a 5.3% increase in revenue to RM41.39 million. For the full year, net profit rose 5.9% to RM16.03 million while revenue increased 2.1% to RM150.41 million. The company attributed the better performance to higher margins and more favourable exchange rates.

The stock is trading at 0.86 times book and a trailing 12-month P/E of 7.46 times. It has consistently paid dividends, which increased from 6 sen to 8 sen per year since 2011, giving shareholders a high 7.2% yield.

This article first appeared in The Edge Financial Daily, on February 11, 2015.