Stock With Momentum: Seacera
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Stock With Momentum: Seacera
Stock With Momentum: Seacera
By Asia Analytica / The Edge Financial Daily | December 14, 2015 : 10:51 AM MYTThis article first appeared in The Edge Financial Daily, on December 14, 2015.
[size=16]Seacera Group Bhd ([You must be registered and logged in to see this image.] Valuation: 3.00, Fundamental: 2.30) (-ve)
SEACERA (Fundamental: 2.3/3, Valuation: 3/3) saw renewed trading interest despite absence of fresh corporate developments. The stock closed 4.3% higher at 84 sen last Friday on rising volume.
Seacera mainly manufactures and trades homogenous and ceramic tiles. The company diversified into construction and property development in 2014. The tiles segment accounted for 87.8% of its sales in 2014, with the balance coming from the construction and property development segment.
For 9M2015, revenue increased 9.8% y-y to RM52.1 million, mainly due to new contribution from the construction and property development segment. Excluding one-off disposal gain of RM11.5 million in 9M2014, pre-tax profit rose 80.5% to RM3.2 million. Note that this excludes revaluation gains of RM294.3 million for 9M2015, mainly on its 215.3 acres of land in Ulu Langat, Selangor.
Due to the revaluation exercise, the land is now worth RM394.0 million — more than double the company’s current market capitalisation of RM152.4 million.
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