ESCERAM (0100) - Stock With Momentum: ES Ceramics

This article first appeared in The Edge Financial Daily, on June 14, 2016.

ES Ceramics Technology Bhd (-ve)

SHARES in ES Ceramics (fundamental: 1.95/3, valuation: 0.8/3) saw their price go up by 9% to an all-time high of 60.5 sen on heavy trading with 14.2 million shares changing hands compared to the average 200-day volume of 5.21 million shares despite the lack of any material announcement or news. ES Ceramics was last featured on “Stocks with Momentum” back in Jan 8, 2016 where it was trading at 50.5 sen. It has jumped by 19.8% ever


For its third quarter financial results ended Feb 29, 2016, the group recorded an increase of 37.6% in revenue to RM7.78 million from RM5.66 million, while its net profit jumped 21.4% to RM1.83 million. The increase is in line with the revenue, expanded capacity and continuous cost improvement in the operations performance, as well as better products mix.

At the current level, the stock is trading at a trailing price-earnings ratio of 17 times and is 2.8 times its book value.

ESCERAM (0100) - Stock With Momentum: ES Ceramics