Friday 26 Apr 2024
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HIL Industries Bhd (+ve)

PLASTIC injection moulding manufacturer HIL (Fundamental: 2.25/3, Valuation: 2.4/3) dipped 4.5 sen or 4.4% to 97.5 sen after hitting a record high of RM1.02 on Tuesday. For 2014, net profit surged 707% to RM19.7 million, boosted by improved demand for its products and earnings from its maiden property development project in Shah Alam.

With its foray into property development, the segment contributed half of pre-tax profit in 2014, up from 21% in 2013. It has a 35-acre land in Ayer Keroh, Melaka and plans to develop a 5-acre land in Shah Alam with GDV of RM80 million this year. HIL focuses on mid-range segment of the property market and is majority-owned by the Ng family who also controls A&M Realty Bhd.

The company has net cash of RM108.4 million, or 39.2 sen per share. The stock trades at a trailing P/E of 14.3 times and 0.93 times book. Dividend was 1.5 sen in 2013, giving a yield of 1.5%.

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This article first appeared in The Edge Financial Daily, on March 19, 2015.

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