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 third time this year, closed 2.5 sen or 3.91% higher at 66.5 sen. It saw 4.25 million shares traded, over six times its 200-day average volume of 656,014 shares.

For the nine months ended Sept 30, 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 its nitrile glove segment. Revenue grew a marginal 1.58% to RM168.33 million from RM165.72 million.

For the third quarter, net profit rose 60% to RM3.11 million from RM1.95 million as revenue rose 11% year-on-year to RM62.23 million versus RM56.27 million previously.

The group said it shall focus on its resources in Malaysia, particularly the nitrile disposable glove division. It has fast-tracked the second phase of expansion expected to boost the current installed capacity from one billion pieces to two billion pieces annually.