Stock With Momentum: Rubberex Corp (M)

Rubberex Corp (M) Bhd (-ve)
GLOVE manufacturer Rubberex Corp (M) Bhd (fundamental: 1.85/3, valuation: 1.8/3) triggered our momentum algorithm for the first time this year, after the counter saw some 23.83 million shares traded or 194 times its 200-day average of 122,783 shares.

The counter recorded its biggest-ever intraday gain of 18 sen or 29.75% yesterday, to hit its two-year high of 78.5 sen. Year to date, the counter has gained 45.37%.

For the nine-month period ended Dec 31, 2019, Rubberex made a net profit of RM7.47 million — up 49.43% from RM5 million a year earlier, thanks to better margins largely contributed by the nitrile glove segment. Comparatively, revenue grew a marginal 1.58% to RM168.33 million, from RM165.72 million.

The group had disposed of its loss-making China division, and fast-tracked its Malaysian expansion to double capacity to two billion pieces annually, and expects contributions from the second quarter of 2020.