Signature International Bhd (+ve)
SIGNATURE (Fundamental: 2.3/3, Valuation: 1.8/3) has seen a sharp uptick in both its share price (+18.1%) and trading volume since releasing its 2QFYJun15 earnings results, on February 13. 

Net profit for 2QFY15 soared to RM12.2 million, from RM2.9 million in the previous corresponding quarter. For 1HFY15, net profit totalled RM18.9 million, up 282% y-y on the back of an 86.5% sales growth.

Signature’s order book, currently hovering around RM200 million, is set to grow as ongoing property projects are progressively completed. The kitchen specialist derives 60-65% of revenue from corporate projects while remaining 40% comes from retail segment.

To reduce reliance on third party manufacturers, Signature is acquiring 38.86 acres of land in Negeri Sembilan, for RM50.78 million, to build a new factory.

The stock is trading at trailing 12-month P/E of 8.5 times and 1.91 times book value. Dividends totalled 5 sen in FY2014, giving a yield of 2.2%.

This article first appeared in The Edge Financial Daily, on March 26, 2015.