Guan Chong Bhd (-ve)
SHARES in Guan Chong Bhd (valuation: 0.8/3, fundamental: 0.5/3) closed nine sen or 7.44% higher at RM1.30 yesterday. It triggered our momentum algorithm for the first time this year with 2.93 million shares traded, over eight times their 200-day average volume of 352,252 shares.
The counter first hit a low of 94 sen on June 1, after posting a decline in performance for its first quarter ended March 31, 2017 (1QFY17), before gaining 36 sen to its current level after three waves of uptick.
Net profit for 1QFY17 plunged 58% to RM5.75 million, from RM13.69 million in 1QFY16 on lower foreign-exchange gains. Quarterly revenue, however, rose 6.75% to RM631.31 million, from RM591.39 million previously, thanks to higher sales volume.
On June 28, the cocoa butter maker announced plans to buy over Koko Budi Sdn Bhd to raise its overall cocoa grinding capacity. At its last close, Guan Chong shares were traded at 1.45 times their price-to-book value.
http://www.theedgemarkets.com/article/stock-momentum-guan-chong-1
