KUALA LUMPUR (Sept 30): Shares in Superlon Holdings Bhd hit its one-month high of RM1.66 in morning trades today after the group reported that its first quarter net profit surged more than three times and paid a dividend of two sen per share.
At 10.37am, the counter narrowed down part of its gains to trade at RM1.60, still up 10 sen or 6.67%, after some 443,100 shares changed hands, making it one of the top gainers on the local bourse.
The stock had earlier risen 16 sen or 10.67% to its one-month high of RM1.66. At RM1.60, the stock's market value was at RM126.26 million.
Superlon is a nitrile butadiene rubber foam insulation materials producer. It was currently trading at price to earnings ratio of 12.7 times.
The group told Bursa Malaysia yesterday that its net profit for the first quarter ended July 31, 2015 (1QFY16) surged more than three times to RM3.86 million from RM1.12 million a year ago, underpinned by its manufacturing division.
Quarterly revenue came in 28.49% higher at RM22.11 million as compared to RM17.21 million in the previous year due to the same reason.
According to the group, its manufacturing division recorded a revenue of RM21 million and profit before tax (PBT) of RM5 million as compared to RM15.2 million and RM1.6 million respectively a year ago.
"The higher PBT was due to increase in total gross profit contributed from higher revenue recorded and contribution from favourable exchange rate movement," it added.
The group has declared a dividend of two sen per share for the current quarter under review. It paid a dividend of six sen per share for the financial year ending April 30, 2015 (FY15) this year.
Going forward, the group expects to achieve positive results for FY16, given the present trend of demand for its products.
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)