KUALA LUMPUR (Mar 17): Apparels manufacturer Magni-tech Industries Bhd jumped as much as 8.25% or 24 sen today after it reported better financial results yesterday.

The counter closed at six-month high RM3.09 today, up 18 sen or 6.2% with 1.12 million shares changing hands, giving it a market capitalisation of RM335.23 million. It was one of the top gainers today.

Magni-Tech Industries (fundamental: 2.8; valuation: 2.4) saw its net profit rose nearly 18% to RM17.49 million in the third quarter ended Jan 31, 2015 (3QFY15), compared to RM14.84 million a year earlier, due to higher revenue and other operating income. The company also proposed dividend per share of five sen for the quarter.

For the nine months ended Jan 31 (9MFY15), Magni-Tech posted a net profit of RM35.58 million — an increase of 6.33%.

An analyst told theedgemarkets.com that the company’s earnings had fared well although the increase in its net profit might not be a jump, in view of the uncertainties on the global economy. He believed the better financial performance might have lent support to share price and trading volume today.

“Their (Magni-tech) results are considered good, after taking into account the uncertainties in the global economy. At least the company is still growing even though the outlook of the apparels industry looks bleak,” he said, adding that the profit margin of the apparel business is always thin.

Magni-tech was also chosen by Insider Asia as an “undiscovered, undervalued” stock last October when the stock was trading at RM2.94 then.

Insider Asia said the stock was at that time trading at a low 12-month trailing P/E ratio (excluding cash) of only 5.1 times, with net cash accounting for one-third of its stock price.

The apparel manufacturer is also a major supplier to global sportswear leader Nike.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)