August 23, 2021

BP Plastics Appeared With A Surge At The Beginning Of The Week

 BP Plastics Holding Bhd's share price traded up 10% in the trading session on Bursa Malaysia after declaring a total dividend of three sen per share last Friday and recording a profit in the second quarter.

Showing an increase of 15.79% or 30 sen to RM2.20, BP Plastics shares were listed among the top gainers today.

At 10.43am, the counter remained up around 9.47% or 18 sen to RM2.08 with 3.88 million shares traded.

To date, BP Plastics shares have gained more than 50% from the RM1.38 level reached on 25 May 2021.

The group has announced a net profit for the second quarter ended June 30, 2021 up 74.39% to RM14.77 million from RM8.47 last year.

According to the assessment, the improvement factor was supported by higher sales rates as well as better product combinations.

The group's quarterly revenue also jumped 35.69% to RM108.95 million from RM80.29 million due to stronger product demand.

Kenanga Research analyst Lim Khai Xhiang said the group's first half -core net profit exceeded expectations when it rose by RM24.6 million.

Lim remains confident that the group's continued growth is driven by strong demand as well as capacity expansion despite only having a 60%workforce limit.

"Following the implementation of the reopened economy, we are confident that the group will continue to generate stronger revenue," he said.

Meanwhile, Lim noted that the group also offers an attractive dividend yield of 5.3% which the industry average is only 3%.