Ajiya Shares Up On Bullish Q2

Ajiya Bhd stock will be sky rocket? But with curent weak fundamental can the share do the breake out?
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KUALA LUMPUR, July 20 (Bernama) -- Shares of Ajiya Bhd, a building materials supplier, rose four sen to RM1.80 at 10.12 am after posting bullish results for the second quarter ended May 31, 2011.

Its net profit for the second quarter rose 13.68 per cent to RM7.23 million, from RM6.36 million chalked up in the same quarter last year, while revenue increased to RM100.9 million from RM87.39 million previously.

OSK Research Sdn Bhd maintained a positive view of Ajiya as its numbers improved in the second quarter coupled with the fact that it was also receiving more orders as projects under the Economic Transformation Programme (ETP) roll out.

"We are confident Ajiya may see a better second half as earnings pick up in tandem with the implementation of projects under the ETP, which are set to stimulate demand for building materials.

"We also see the company making more progress this year by expanding plant production to capture demand arising from the ETP," OSK Research said in a research note Wednesday.

It maintained a "buy" call on Ajiya with a fair value of RM2.17.

Source: Bernama, OSK