I am a fundamental investor so I look at company performance. Over the past 12 years, the company had an average ROE of 9%. In comparison, the mean ROE of the Bursa furniture companies averaged 8%. So it outperformed a bit.
From a fundamental perspective, there is no reason for the price to double within a month. The property and construction sectors in Malaysia are still recovering from Covid and I don't expect immediate boost in any company results. Furthermore while oil prices were high, the Bursa energy services companies have yet to benefit. https://focusmalaysia.my/the-benefits-of-high-oil-prices-have-not-trickled-down-to-bursas-og-services-sector/. You can see the blog analysis of Naim, the property and construction sectors and even the oil & gas services sector. From a fundamental perspective, the stock is still undervalued. So it should go higher. But will it?
The Bursa furniture sector is a resilient one based on the blog analysis "Which are the better stocks in Bursa Malaysia furniture sector?" Over the past 12 years, the industry average ROE was 8%. In contrast, TAFI average ROE for the same period was negative 5%. Draw your own conclusion.
I carried out an analysis of the performance of the Bursa furniture sector over the past 13 years and this company was one screened for further investigation. If you want to see the details of the sector or the analysis of LEESK go to my blog.