Stock With Momentum: Rubberex Corp

Rubberex Corp (M) Bhd (-ve)

Rubberex Corp (M) Bhd (fundamental: 1.8/3, valuation: 0.6/3), which triggered our momentum algorithm yesterday for the sixth time this year, closed 2.5 sen or 2.97% lower at 81.5 sen.

It saw 9.55 million shares traded, over 11 times its 200-day average volume of 862,828 shares.

For the financial year ended Dec 31, 2019 (FY19), Rubberex made a net profit of RM11.35 million, up 30.72% from RM8.69 million for FY18, mainly due to favourable glove selling prices and higher profit margins. Revenue grew 8.64% to RM222.97 million from RM205.24 million.

The higher annual earnings came after its final quarter’s net profit rose 5.15% to RM3.88 million from RM3.69 million a year ago, as revenue grew 38.26% to RM54.64 million from RM39.52 million.

The group said the next phase of expansion of its nitrile glove division will be completed by third quarter of the year. Its annual capacity would then rise to 2.5 billion pieces.