Salcon Bhd (-ve)
SHARES of Salcon Bhd (Fundamental: 1.75/3, Valuation: 2.2/3) triggered our momentum algorithm for the first time this year. The counter rose as much as 4 sen or 6.4% to an intraday high of 66.5 sen before closing at 65.5 sen yesterday, with some 13.13 million shares changing hands. Its 200-day average volume was at 2.41 million shares.
The water and wastewater engineering company saw its net profit widen to RM6.45 million in the fourth quarter ended Dec 31, 2015 (4QFY15), from RM5.29 million in the previous year as revenue from constructions division fell. Revenue fell 40.43% to RM59.53 million from RM99.93 million.
For FY15, Salcon’s net profit grew 20.61% to RM5.56 million from RM4.61 million a year earlier, attributed by the unrealised gains on foreign exchange. Revenue, however, fell 35.53% to RM125.37 million from RM194.47 million.
The stock currently trades at a trailing 12-month P/E of 74.72 times and is at 0.77 times book value.
SALCON (8567) - Stock With Momentum: Salcon
http://www.theedgemarkets.com/my/article/stock-momentum-salcon
