Southern Acids (M) Bhd (-ve)

Southern Acids (M) Bhd (fundamental: 2.35/3, valuation: 1.4/3) made it to our Stocks with Momentum list last Friday for the first time this year. The stock closed down 1.3% or five sen at RM3.76 after 15,000 shares were traded, compared with its 200-day average trading volume of 2,122 shares.

For the third quarter ended Dec 31, 2019 (3QFY19), it posted a net profit of RM10.43 million, over 2.1 times the RM5.04 million it recorded for 3QFY18, as all of its three core segments — oleochemical, milling and estate, and healthcare — reported improved performance. Revenue grew 16.8% to RM171.25 million from RM146.65 million. For the cumulative nine months, the group’s net profit increased 13.3% to RM23.3 million from RM20.56 million a year ago, while revenue rose 5% to RM480.6 million from RM457.64 million.

Southern Acids is primarily involved in the manufacturing and marketing of oleochemical products, selling oil palm fruit and crude palm oil, warehousing and bulk conveyor operations, as well as healthcare.