SINGAPORE - A-Sonic Aerospace's stock surged 13 per cent yesterday to a recent high, prompting a query from the Singapore Exchange (SGX).

The company, which is on the SGX Watchlist, responded that it did not know why its stock price had leapt to 64 cents before closing up seven cents, or 13 per cent, at 60.5 cents.

A-Sonic said in a statement after the market's close that it was not aware "of any information not previously announced concerning the company, its subsidiaries or associated companies which, if known, might explain the trading".

However, it suggested that interest in the stock could have been fanned by the company's strong and steady financial performance and dividend payout: "After evaluation and assessment, the market might have particularly taken into consideration the following in our results."

On March 2, A-Sonic announced it had chalked up a net profit of $8.71 million for the year ended Dec 31.

Its stock has risen about 60 per cent since then.

The company was profitable in the two prior years as well.

Net profit was $3.45 million in the 12 months to Dec 31, 2019, and $1.99 million in 2018. The company has paid dividends in the past three years.

A-Sonic's net tangible assets amounted to $47.91 million as at Dec 31 last year.

Yesterday's stock price surge has lifted the company's market capitalisation to $35 million.

It was placed on the SGX Watchlist in June 2017.

It must achieve an average volume-weighted daily market capitalisation of $40 million for the previous six months in order to be removed from the list.

It has not achieved that.

A-Sonic Group is engaged in two areas of business - aviation and logistics.

Its aviation arm relates to the sale and purchase of aircraft and aircraft engines.

On the logistics side, it is engaged in supply chain management services and solutions, including international and domestic multi-modal transport, warehousing, distribution, customs clearance and airport ground services.

The firm operates in 29 cities in 16 countries across Asia, North America, the Indian sub-continent and Europe.

A-sonic chief executive Janet Tan suggested yesterday that despite the price appreciation, the stock was still undervalued: "At current price, we are still trading at four times price-earnings."

Meanwhile, its industry peers in the logistics sector are trading at around 20 times.

The question is whether some savvy market players are beginning to also realise this.