Jaycorp Bhd (-ve)
Shares of Jaycorp (Fundamental: 1.4/3, Valuation: 2.6/3) have risen by 19.7% since Monday, following the rally in furniture-related stocks. The stock closed at a one-year high of 85 sen yesterday.
Jaycorp manufactures rubberwood furniture, processes rubberwood and converts corrugated boards into carton boxes. Export, mainly to North America and Asia, accounted for 55% of its sales in FYJuly2014.
On April 30, Jaycorp completed the acquisition of a 51% stake in Instyle Sofa Sdn Bhd, a manufacturer of sofa sets and non rubberwood furniture products, for RM4.2 million. The acquisition will enable Jaycorp to diversify into new export markets segments.
For 3QFY2015, revenue increased 8.9% y-o-y to RM59.6 million while net profit surged 83.8% to RM4.0 million, thanks to better performance from furniture and kiln-drying segments.
The stock trades at a trailing 12-month P/E of of 13.4 times and 0.82 times book. The company has consistently paid dividends of 3.5 sen from FY2012-FY2014, giving a net yield of 4.5%.
This article first appeared in The Edge Financial Daily, on July 23, 2015.