Stocks With Momentum: Raya International

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Raya International Bhd (+ve)
Raya (Fundamental: 0.35/3, Valuation: 0/3), previously Envair Holding, manufactures and distributes air and water filters.

Over the past five years, Raya has seen numerous changes in its shareholdings and directors.

Notably, the company has had five different Executive Directors and two Managing Directors (MD) at its helm.

The company was loss-making from 2009 to 2011, when it ran into financial difficulties. It turned marginally profitable in 2012-2013 but fell back into the red in 9M2014 with cumulative net loss of RM769,000.

2014 saw the emergence of the new MD, who is also a substantial shareholder with a 14.2% direct and indirect stake. Under the new management, Raya proposed to dispose of its land with a three-storey office block annexed to a warehouse for RM8.3 million.

Disposal proceeds would be used to repay borrowings and for working capital requirements. It is unclear as yet what plans the management has for Raya going forward.

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This article first appeared in The Edge Financial Daily, on February 27, 2015.