Stock With Momentum: Ajiya

This article first appeared in The Edge Financial Daily, on July 30, 2018.
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Ajiya Bhd (-ve)

TRADING of shares in Ajiya Bhd (fundamental: 2.25/3, valuation: 1.4/3) triggered our momentum algorithm last Friday for the first time this year.

The company, which is involved in the production of safety glass, metal products and industrialised building system, saw 2.85 million shares traded, equivalent to 0.94% of its share capital, and exceeding the counter’s 200-day average of 254,577.

The Main Market-listed stock closed up three sen or 5.17% at 61 sen last Friday, with a market capitalisation of RM185.85 million. Ajiya was last traded at 0.53 times its book value.

Last week, Ajiya announced that its net profit for the second quarter ended June 30, 2018 tripled to RM4.86 million, from RM1.62 million a year ago, while quarterly revenue rose 14.65% to RM103.74 million, from RM90.48 million in the same period last year.

According to Ajiya, the stronger income, which translated into stronger earnings, was achieved on the back of better sales and higher margins.