Hot Stock Minho soars to near 6-yr high on rising timber prices

Hot Stock Minho soars to near 6-yr high on rising timber prices
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Monday, 22 July 2013 16:49

KUALA LUMPUR (July 22): MINHO (M) BHD [] soared to near six-year high today due to the surge in timber prices that is seen as having a positive impact on its earnings this year, dealers said today.

“Timber prices have been going up since January by about 50% and this will definitely augur well for timber-linked companies like Minho,” said a dealer.

At 4.07pm today, Minho shares rose 12 sen or 15% to 93 sen per unit after hitting a high of 96.5 sen, on trades of some 1.8 million shares.

In fact last week and earlier this month, the stock had already begun to react to this positive development.

Compared to its net tangible asset of RM2.73 as at end-March 2013, the market price of 93 sen is low, dealers noted.

The company, which exports its timber products to Japan, is seen as a good proxy for the potential upturn in Japan's housing market.

Minho, which is involved in logging and supplying of logs, also makes and exports processed timber products. It is also involved in property Development.

For the first quarter this year, the company incurred a loss of RM37,000 on turnover of RM62.1 million, compared to a profit of RM669,000 on RM65 million in similar quarter in 2011.