Hot Stock SYF Resources shares falls 3.48% on profit taking

by **Cals** Thu 17 Dec 2015, 21:02

Hot Stock

[size=28]SYF Resources shares falls 3.48% on profit taking

By Meena Lakshana / theedgemarkets.com | December 17, 2015 : 12:04 PM MYT

KUALA LUMPUR (Dec 17): Wood-based furniture producer SYF Resources Bhd ([You must be registered and logged in to see this image.] Valuation: 1.50, Fundamental: 1.10)'s shares fell as much as 3.48% today due to profit taking despite strong first quarter ended Oct 31, 2015 (1QFY16) results announced yesterday.

At 11.12am, the stock shed as much as 2 sen to 55.5 sen before paring losses and settling at 56 sen. A total of 9.43 million shares were traded.

After beginning the year on a weak note, SYF Resources shares have jumped significantly since July 8 on the back of the strengthening US dollar as the company produces wood-based furniture primarily for exports.

Year to date (YTD), the stock has risen 31.82%, outperforming the FBM KLCI by a wide margin. The FBM KLCI has declined 7.22% YTD.

When contacted, SJ Securities Sdn Bhd remisier K.C. Goh said profit taking had driven the stock down several notches today despite promising 1QFY16 results.

"(The stock's) daily chart still shows an increase in institutional investors," he said.

"The promising results might drive the price up further after profit taking," he added.

He said the intraday support level for the stock is at 55.5 sen while end of day support level is 51 sen.

Yesterday, SYF Resources announced to Bursa Malaysia that its net profit for 1QFY16 had doubled year-on-year (y-o-y) to RM10.83 million from RM5.15 million, mainly on higher revenue from its property development, improved board sales and rubberwood furniture exports, as well as stronger US dollar.

Revenue increased 58% y-o-y to RM94.92 million from RM60.04 million, the company had said.

On future plans, the group is targeting to increase its exports of processed rubber wood materials to other Asian countries, especially China and India, while additional capacity in 2016 will be a catalyst for growth in the boards segment.

The company also expects property development activities to continue contributing significantly to its results, driven by two new projects, namely Kiara Plaza and Wira Heights 3.

In addition, a joint venture residential development in Sungai Long is being developed and will be launched in early calendar year 2016.

(Note: [size=12]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]
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