DNEX (4456) - Stock With Momentum: Dagang Nexchange
This article first appeared in The Edge Financial Daily, on February 22, 2017.
Dagang Nexchange Bhd (-ve)
SHARES in Dagang Nexchange Bhd (fundamental: 3/3, valuation: 2.4/3) triggered our momentum algorithm yesterday for the second time this year. The counter closed one sen or 2.67% higher to settle at 38.5 sen with a market capitalisation of RM650.58 million.
Yesterday, the group announced that its net profit grew more than eight times to RM30.62 million or 1.77 sen per share in the fourth quarter ended Dec 31, 2016 (4QFY16) from RM3.79 million or 0.49 sen per share a year ago, due to contribution from its 30%-owned associate Ping Petroleum Ltd (PPL).
Its revenue more than doubled to RM67.31 million in 4QFY16 from RM27.91 million in 4QFY15 and the group also declared a second interim dividend of 0.5 sen per share, payable on Feb 28.
The group saw a huge climb in its shares traded to 226 million shares, versus its 200-day average volume of just 12,276,326 shares.
The stock has a trailing 12-month price-to-earnings ratio of 6.09 times and is currently trading at 1.76 times its book value.
DNEX (4456) - Stock With Momentum: Dagang Nexchange
http://www.theedgemarkets.com/my/article/stock-momentum-dagang-nexchange
