This article first appeared in The Edge Financial Daily, on June 17, 2016.
Wong Engineering Corp Bhd (-ve)
YESTERDAY was the third time that shares in Wong Engineering Corp Bhd (fundamental: 1.15/3, valuation: 0.3/3) triggered our algorithm momentum, making it the fifth time overall. Its trading volume yesterday of 1.04 million shares was nearly 10 times the 200-day average of 106,870.
The company, which was trading at 1.02 times its book value yesterday, does not have much corporate developments. But the recent surge in shares of the precision high-component parts came around the time it announced its continued profitability in its second quarter ended April 30, 2016 (2QFY16).
This brought its cumulative net profit for the first six months of FY16 to RM763,000 or 0.83 sen a share, on a revenue of RM16.53 million. In the previous corresponding period, it incurred a net loss of RM1.75 million or 1.91 sen per share, on the back of RM14.3 million in revenue.
WONG (7050) - Stock With Momentum: Wong Engineering Corp