KUALA LUMPUR (July 31): Texchem Resources Bhd (KL:TEXCHEM) climbed to its highest in nearly two years after the company, known mostly for Sushi King restaurants, posted a sixfold jump in second-quarter (2Q) earnings.
The stock surged as much as 37% or 27.5 sen to RM1.02 sen, a level last seen in August 2024. Texchem, which also has an industrial chemicals and materials business, closed at 99 sen after a little under four million shares exchanged hands.
The company has a market capitalisation of RM116 million based on its last price.
RHB Research, the sole house covering the stock, remained bullish post-results and maintained its RM1.39 target price.
"Trading at just 5-6 times 2026 P/E, we view the valuation as compelling given the firm growth trajectory and exposure to the semiconductor sector," the house said.
Rising demand for automated transport equipment materials used in the semiconductor and HDD industries should continue to drive growth in the group's polymer engineering division, while the restaurant segment is benefitting from ongoing brand revitalisation, a greater focus on the kiosk model, and outlet rationalisation, RHB Research added.