Yen Global Bhd
Yen is an apparel manufacturer and retailer, whose brands include Edwin, Mustang Jeans and GA Blue. Its share price has surged 31.8% over the last two weeks but it is unclear if the uptrend is sustainable based on the company’s financial performance.
The company has been in the red since FY July 2010, though it managed to return to black in FY13 with a net profit of RM 1.1 million on revenue of RM 45.5 million. However, it fell back into the red with a wider net loss of RM 9.1 million in FY14, while revenue declined 18.7% to RM37 million. It has net debt of RM 11.4 million, or a net gearing of 26.4%.
The stock is trading just under its book value of 31 sen and has been fluctuating between 20 – 35 sen for the past three years with bouts of zero-liquidity.
This article first appeared in The Edge Financial Daily, on November 4, 2014.