Magni-Tech Industries Bhd (-ve)
MAGNI-TECH (Fundamental: 2.8/3, Valuation: 2.4/3) saw its share price rise as much as 8.3% before closing 6.2% higher at RM3.09 yesterday after announcing good results last Monday. 

For 3QFYApril2015, pre-tax profit rose 16.3% to RM23.1 million on the back of a 7.2% increase in sales to RM200.4 million.

Magni is primarily a manufacturer of garments for the export market, as well as a wide range of packaging products. For FY2014, garments accounted for 81.5% of sales with the remaining 18.5% from packaging.

Magni is likely to gain from the strengthening US dollar as its sales are mainly denominated in the greenback. Exports — mostly to the US and Europe — accounted for 81.6% of sales in FY2014.

Magni has a strong balance sheet with net cash of RM74.7 million or 68.9 sen per share. The stock is trading at a trailing 12-month P/E of 7.6 times and 1.3 times book. Dividends totalled 13 sen in FY2014, translating into a net yield of 4.5%.

This article first appeared in The Edge Financial Daily, on March 18, 2015.