MBMR (5983) - Stock With Momentum: MBM Resources

MBMR (5983) - Stock With Momentum: MBM Resources

This article first appeared in The Edge Financial Daily, on August 5, 2016.

MBM Resources Bhd (+ve)

Shares in MBM Resources Bhd (fundamental: 1.05/3, valuation: 2/3) triggered our momentum algorithm for the first time this year, after 723,400 shares were exchanged yesterday. Its 200-day average volume stood at 164,661. MBM closed up four sen or 1.67% at RM2.44.

MBM is seen as the largest beneficiary of its 20%-owned associate Perodua’s recently launched Perodua Bezza, the carmaker’s first energy-efficient sedan.

Based on reports, Perodua expects an average of 15,000 bookings in the first three months, with a monthly 10,000 units average registration in the new model’s first three months, before tapering to 7,700 units later.

Some analysts are also expecting the Bezza, along with the upcoming replacement for the Myvi, to revive MBM’s loss-making alloy wheel division.

The stock currently trades at 0.59 times its book value. MBM paid 10 sen per share in dividends for its financial year ended Dec 31, 2015.

MBMR (5983) - Stock With Momentum: MBM Resources