This article first appeared in The Edge Financial Daily on December 11, 2017

Stock With Momentum: Caely Holdings Bhd (-ve)

SHARES in lingerie manufacturer Caely Holdings Bhd (fundamental: 1.50/3, valuation: 0.35/3) triggered our momentum algorithm last Friday for the third time this year.

The counter climbed 0.5 sen or 0.91% to close at 55.5 sen, giving the group a market capitalisation of RM44 million. A total of 3.41 million shares were traded compared with a 200-day average volume of 307,808 shares.

Shares in Caely hit a one-year low of 38 sen on Nov 28 before surging 51.32% to a one-year high of 57.5 sen days later, on Dec 6. The group also recorded its highest trading volume of the year at 12.44 million shares.

In the second quarter ended Sept 30, 2017 (2QFY18), Caely, which is also involved in property and construction, slipped back into the red with a net loss of RM233,573 after five consecutive years of booking a profit. In the previous year’s corresponding quarter, it made a net profit of RM2.19 million.

Meanwhile, its 2QFY18 revenue slipped 27.15% to RM21.24 million, mainly due to a 53.51% drop in contribution from its property and construction segment, which saw several projects nearing completion. Its lingerie manufacturing segment also saw revenue and segmental profit decline on lower sales, lower margins and a decrease in other operating income.