Stock With Momentum: Rubberex Corp (M)

Rubberex Corp (M) Bhd (-ve)
TRADING of shares in Rubberex Corp (M) Bhd (fundamental: 1.85/3, valuation: 1.8/3), which triggered our momentum algorithm yesterday for the second time this year, closed 1.5 sen or 2.11% lower at 69.5 sen.

The rubber glove manufacturer saw 5.87 million shares traded, over 11 times its 200-day average volume of 511,942 shares.

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

The group, which sold its loss-making China division for HK$135 million in January last year, has fast-tracked its Malaysian expansion to double its capacity to two billion pieces annually. It expects contributions from this increased capacity from the second quarter of 2020.