KUALA LUMPUR: ADVENTA BHD [] shares jumped on Thursday, Dec 23 after the glove maker proposed a first and final tax exempt dividend of 7 sen per share for the financial year ended Oct 31, 2010.
At 10.30am, Adventa was up 27 sen to RM2.19 with 1.32 million shares done.
Adventa's net profit for the fourth quarter ended Oct 31, 2010 surged 220% to RM11.8 million from RM5.36 million a year ago, on the back of a 22% improvement in revenue to RM91.02 million.
For the full-year, Adventa's net profit more than doubled to RM35.8 million from RM16.96 million, while revenue rose 19% to RM336.17 million from RM282.74 million.
OSK Investment Research in a note Dec 23 said Adventa's 4QFY10 results were above expectations, mainly contributed by positive tax rates.
"Profit before tax was, however, lower due to a time lag as only about 70%-80% of the higher costs incurred as a result of rising latex prices and the weakening of the USD against MYR were passed on to customers.
'We are downgrading our FY11 earnings by 21% but maintain a Buy with a higher target price of RM3.80 as we roll forward to FY12 valuation,' it said.
At 10.30am, Adventa was up 27 sen to RM2.19 with 1.32 million shares done.
Adventa's net profit for the fourth quarter ended Oct 31, 2010 surged 220% to RM11.8 million from RM5.36 million a year ago, on the back of a 22% improvement in revenue to RM91.02 million.
For the full-year, Adventa's net profit more than doubled to RM35.8 million from RM16.96 million, while revenue rose 19% to RM336.17 million from RM282.74 million.
OSK Investment Research in a note Dec 23 said Adventa's 4QFY10 results were above expectations, mainly contributed by positive tax rates.
"Profit before tax was, however, lower due to a time lag as only about 70%-80% of the higher costs incurred as a result of rising latex prices and the weakening of the USD against MYR were passed on to customers.
'We are downgrading our FY11 earnings by 21% but maintain a Buy with a higher target price of RM3.80 as we roll forward to FY12 valuation,' it said.
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