SCGM (7247) - Stock With Momentum: SCGM

SCGM Bhd (+ve)

SHARES in SCGM Bhd (fundamental: 2.15/3, valuation: 1.7/3), which jumped 19 sen or 5.85% to close at RM3.44 on Tuesday, triggered our momentum algorithm for the first time this year.

It saw 2.06 million shares traded, compared to its average volume for the past 200 days of 210,760 units.

SCGM’s revenue for the past six financial years from 2010 to 2015 has been growing between 3.5% and 18% per annum.

Net profit, meanwhile, went up from 2010 to 2011, but dropped in 2012, before picking up again in 2013. Since then, its earnings grew 39.6% year-on-year (y-o-y) in financial year ended April 30, 2013 (FY13), 46.5% y-o-y in FY14 and 34.5% y-o-y in FY15.

The company is principally involved in the manufacturing and trading of plastic products such as thermo-vacuum-formed plastic packaging, primarily for food products.

Year to date, the counter has gained 7.26%. It is now trading at a trailing 12-month price-earnings ratio of 19.61 times.

SCGM (7247) - Stock With Momentum: SCGM