Singapore’s Big Winner for the Week: Asia Fashion Holdings Ltd

Asia Fashion Holdings Ltd (SGX: GH3) has surged some 44% since last Friday, to close at S$0.065 on Thursday. With the Straits Times Index (SGX: ^STI) moving in the opposite direction, Asia Fashion has certainly been a big winner in the Singapore market this week.

Asia Fashion is an integrated manufacturer of functional knitted fabrics used in casual wear, sportswear, shoes and bags. Its products are used by both international and China brand names.

On 13 October 2014, the company said that it is expected to report higher profits as compared to the preceding financial quarters and year. The better performance in 3Q 2014 is mainly due to the consolidation of the financial results of China Construction Material (Hong Kong) Limited and its subsidiaries.

The higher profit is despite recording a loss of RMB 421 million in the financial year ended 31 December 2013, an operating loss of around RMB 0.6 million in total comprehensive losses in the first quarter ended 31 March 2014, and an operating profit of around RMB 0.1 million in the second quarter ended 30 June 2014.

Asia Fashion is now trading at 4.8 times its historical earnings. To keep up to date on the latest financial and stock market news and learn more about investing, sign up now for a FREE subscription to The Motley Fool’s weekly investing newsletter, Take Stock Singapore. It will teach you how you can grow your wealth in the years ahead.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.