BORNOIL (7036) - Stock With Momentum: Borneo Oil

This article first appeared in The Edge Financial Daily, on July 11, 2016.

Borneo Oil Bhd (-ve)

SHARES in Borneo Oil Bhd (fundamental: 2/3, valuation: 1.5/3) climbed 1.5 sen or 8.82% to close at 18.5 sen last Friday, with 162.57 million shares traded, compared with its 200-day average volume of 18.5 million shares.

Borneo Oil’s new core business is in oil, gas and energy. The company is also involved in the provision of management services, catering services and cafe-cum-entertainment operation, and has a chain of fast-food restaurants called SugarBun. For its first financial quarter ended April 30, 2016 (1QFY17), Borneo Oil reported a net profit of RM10.7 million, more than 20 times its 1QFY15 net profit of RM525,000, thanks to improved performances from both its fast food and franchise and mining, energy and related divisions, as well as its property, management and operation division.

Revenue for 1QFY17 also ballooned to RM1.49 billion, from RM14.63 million a year ago, contributed by its mining- and energy-related operations.

At the current share price, Borneo Oil is trading at 0.9 times its book value.

BORNOIL (7036) - Stock With Momentum: Borneo Oil