KUALA LUMPUR (Nov 16): Tien Wah Press Holdings Bhd, a producer of tipping paper for cigarette packages, has surged to a new all-time high today of RM2.61, after a 27.47% rise last week.
At noon break, the shares settled 28 sen or 12.07% higher at RM2.60 apiece, after some 501,900 shares were traded.
Analysts and remisiers have described Tien Wah as an undervalued stock, as it was still trading at 10.34% below its latest book value of RM2.90 per share.
“Of course it (Tien Wah) is undervalued. The net tangible asset per share was RM2.90,” SJ Securities Sdn Bhd's senior remisier, Goh Kay Chong, told theedgemarkets.com.
He also said there has been a deluge of buying at Tien Wah’s counter, which peaked at 1.01 million shares last Thursday (Nov 12).
Its average trading volume as at last Friday (Nov 13) was in the four digits.
Last Monday (Nov 9), Tien Wah was trading at only RM1.82 per share, which valued it at RM175.62 million; as at noon break today, its market capitalisation had risen to RM250.89 million.
Tien Wah also had a 74.11% boost in its bottom line for the nine months ended Sept 30, 2015 (9MFY15). In that period, its net profit was RM22.2 million or 23 sen a share, on the back of RM270.31 million in revenue.
In comparison, its previous corresponding period’s net profit came in at RM12.75 million or 13.21 sen per share, with revenue at RM266.84 million.
Tien Wah also increased its dividend to four sen a share as at that period, from three sen last year.
Tien Wah’s three largest shareholders were Singapore Pacific Investments Pte Ltd (with a 29.89% stake), Tien Wah Holdings (1990) Sdn Bhd — a holding company owned by Tien Wah’s Chairman Yen Wen Hwa (24.21%), and Lembaga Tabung Angkatan Tentera (13.8%).
(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.)