Hot Stock Y&G almost hits limit up on better earnings, five sen dividend

by **Cals** Mon 01 Jun 2015, 22:50

Hot Stock
Y&G almost hits limit up on better earnings, five sen dividend

KUALA LUMPUR (June 1): Shares of Y&G Corp Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) almost hit limit up in the morning trading session after the group posted an encouraging net profit in the first three months ended March 31, 2015 (1QFY15).
As at 12.30pm midday break, the stock was at its three-year high of RM1.40, up 32 sen or 29.63%, making it the top gainer across the bourse.
Some 124,900 units shares were seen traded. The current price gives Y&G (fundamental: 2.7; valuation: 2.6) a market capitalisation of RM215.34 million.
According to senior remisier Goh Kay Chong from SJ Securities, the main factor contributing to the price rally was the surge in the group’s latest quarterly net profit, and the five sen dividend declared in the quarter.
"However, I do not think the share price can be sustained as there was no trading volume until investors react to the news," he said.
"Apart from that, there was a big fund that came to buy into the counter last Friday," he added.
To recap, Y&G’s net profit went up five times for the three months period ended March 31, 2015 (1QFY15) to RM13.75 million from RM2.73 million a year ago, on higher revenue.
Revenue for the quarter came in at RM91.11 million, up about three times compared to RM23.01 million a year earlier. The group derived most of its revenue from the development activities.
The group also said better take-up rate particularly, of its commercial units, higher development activities ahead of the implementation of goods and services tax (GST) and the revenue contributed by the recently acquired and consolidated subsidiary also lifted its revenue.
Y&G also declared a five sen interim single-tier dividend payable onJune 24 this year.
Going forward, Y&G said in view of the current market for property development and the completion of the corporate proposals in the previous financial quarter, the group expects an improvement in the revenue for the financial year ending Dec 31, 2015.
(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.)