Hot Stock Luxchem rises 8.7% after stellar 2Q results, 2 sen dividend

by **Cals** Sat 01 Aug 2015, 03:20

Hot Stock
Luxchem rises 8.7% after stellar 2Q results, 2 sen dividend

KUALA LUMPUR (July 31): Luxchem Corp Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) saw its share price jump as much as 9 sen or 8.7% after the industrial chemicals supplier reported stellar results in its second quarter ended June 30, 2015 (2QFY15).
At 2.48pm, the counter pared some gains and was trading at RM1.10, still up 7 sen or 6.8%, with 707,500 shares done. Its market capitalisation was RM289.8 million.
Luxchem earlier reached a high of RM1.12.
Luxchem (fundamental: 2.1; valuation: 1.8) announced yesterday that its net profit surged 107% to RM9.81 million or 3.75 sen per share in 2QFY15 from RM4.75 million or 3.65 sen per share in 2QFY14, driven by higher revenue from its trading and manufacturing segments.
Revenue rose 5% year-on-year to RM161.03 million from RM153.5 million.
The company also declared a single-tier interim dividend of 2 sen per share for the period, payable on Sept 30.
For the first half of FY15 (1HFY15), Luxchem’s cumulative net profit climbed 11% to RM11.36 million or 4.35 sen per share from RM9.7 million or 7.46 sen per share in 1HFY14, while revenue rose 12% to RM333.57 million from RM296.96 million.
Going forward, Luxchem said it remains positive on its prospects despite fluctuations in exchange rates and raw material prices which will continue to be a challenge to the group.
Year-to-date, Luxchem’s share price has appreciated 6.8%, outperforming the FBM KLCI which fell 2.7% over the same period, according to Bloomberg data.
(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.)