CCK (7035), - Stock With Momentum: CCK Consolidated Holdings

CCK Consolidated Holdings Bhd (+ve)

SHARES in poultry farmer CCK Consolidated Holdings Bhd (valuation: 1.4/3, fundamental: 1/3) triggered our momentum algorithm yesterday for the sixth time this year. The counter saw 10.66 million shares traded compared with its 200-day average volume of 1.03 million shares.

The stock gained six sen or 6.94% to close at 92.5 sen yesterday, with a market capitalisation of RM284.73 million. It was trading at about 1.85 times its trailing 12-month price-earnings ratio.

On May 15, CIMB Research started coverage on the company with a target price of RM1.28. The counter subsequently climbed to its all-time high of RM1.05 on May 23, but failed to maintain its gains despite posting better year-on-year performance in its first quarter ended March 31, 2017 (1QFY17) on May 25.

CCK’s 1QFY17 profit was up 52.4% to RM4.6 million, from RM3 million in 1QFY16, thanks to higher revenue in its retail segment. Quarterly revenue was up 14.4% year-on-year at RM142.4 million.