AISB (2682) - Stock With Momentum: Amalgamated Industrial Steel

This article first appeared in The Edge Financial Daily, on August 10, 2016.

Amalgamated Industrial Steel Bhd  (-ve)

Shares in Amalgamated Industrial Steel Bhd (AISB) (fundamental: 0.55/3, valuation: 0.9/3) triggered our momentum algorithm for the first time this month, with trades of 723,300 shares yesterday compared to its 200-day average volume of 42,825.5. The counter closed up 2.5 sen or 4.81% at 54.5 sen.

The loss-making steel pipe manufacturer is expecting to turn its operations around in its financial year ending Dec 31, 2016 (FY16), driven by its newly-established property development division, which is expected to overtake its current steel business.

Earnings from its property development division, which will be contributed by its Avant Industrial Park with a gross development value of RM160 million, is expected to exceed the group’s existing steel business.

For the first quarter ended March 31, 2016, AISB reported a 6% year-on-year contraction in net loss to RM1.16 million, while revenue fell 23% to RM15.15 million.

AISB is trading at 0.57 times its net book value. The company did not pay any dividend in FY15.

AISB (2682) - Stock With Momentum: Amalgamated Industrial Steel