Plastrade Technology Bhd (+ve)
PLASTRADE (Fundamental: 1.15/3, Valuation: 1.2/3) saw a cumulative 32 million shares change hands on Tuesday and Wednesday. The stock does see sporadic spikes in volumes, previously in August and November 2014. By comparison, an average of 1.94 million shares were traded daily in the past 200 days. Prices reached 17.5 sen on Tuesday but fell 1.5 sen or 8.6% to 16 sen yesterday.
The ACE market-listed company manufactures resin compounds for cables and wires, automotive and plastic industries. It has a 25%-owned manufacturing plant in Shanghai, China. About 30% of sales are derived from export. Plastrade reported net loss of RM0.15 million in 2014 after revenue dropped 17.9% to RM51.6 million. The lacklustre results was attributed to lower demand and higher cost of sales.
Gearing stood at 12.4% with interest cover of 3.4 times. The stock is trading at 20% below book value. No dividends were paid for the past five years.
This article first appeared in The Edge Financial Daily, on April 2, 2015.