Daibochi Bhd (+ve)

TRADING of shares in plastic packaging company Daibochi Bhd (fundamental: 0.75/3, valuation: 0.3/3) triggered our momentum algorithm yesterday for the third time this year, after the company posted a commendable first quarter following contributions from its newly acquired subsidiary, Mega Printing & Packaging Sdn Bhd (MPP).

The counter closed one sen or 0.44% lower at RM2.27, after trading volume surged to 1.68 million shares — 11.2 times its 200-day average of 150,040 shares. Year to date, Daibochi shares have gained 40.12%.

For the first quarter ended Oct 31, 2019, Daibochi booked a net profit of RM10.98 million on the back of a revenue of RM152.56 million — both record-high numbers after it incorporated the contribution of MPP. There were no year-on-year comparable figures as Daibochi has changed its financial year end to July 31 from Dec 31.

Besides MPP’s contribution, Daibochi said the favourable results were also helped by better operational efficiency and a favourable product mix.