Hot Stock Can-One rises 14% on stronger 2Q profit, weaker ringgit

by **Cals** Thu 27 Aug 2015, 14:25

Hot Stock
Can-One rises 14% on stronger 2Q profit, weaker ringgit

KUALA LUMPUR (Aug 27): Can-One Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) rose as much as 29 sen or 14% to RM2.35 after the can manufacturer said its second quarter net profit jumped 76% from a year earlier.
Investors have also bought Can-One (fundamental: 1.1; valuation: 2.4) shares in anticipation that the export-oriented firm's income will benefit from a weaker ringgit against the US dollar.
At 10.34am, Can-One pared gains at RM2.26 with 586,900 shares changing hands. The stock was the 10th-largest gainer across the exchange.
Yesterday, Can-One said net profit grew 76% to RM23.67 million in the second quarter ended June 30, 2015 from RM13.46 million. Revenue, however, declined to RM216.57 million from RM232.74 million.
First-half net profit climbed to RM38.72 million from RM23.84 million a year earlier. Revenue was lower at RM407.86 million versus RM425.11 million.
Can-One's latest reported net assets per share stood at RM3.05.
Today, the ringgit weakened to 4.2475 against the US dollar after depreciating to a fresh level at 4.2995 yesterday.
As exporters like Can-One sells its products in US dollars, a weaker ringgit translates into higher income when the US dollar denominated sales are converted into the Malaysian currency.
[size=12](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.)[/size]