Choo Bee Metal Industries Bhd (-ve)
TRADING of the shares in Choo Bee Metal Industries Bhd (fundamental: 2.05/3, valuation: 3/3) triggered our momentum algorithm yesterday for the first time this year. The counter saw 774,300 shares traded compared to its 200-day average of 129,530.5.
Choo Bee’s net profit increased 62.5% for its second quarter ended June 30, 2018 (2QFY18) to RM10.25 million from RM6.31 million in the corresponding period the previous year. Revenue was up 19.9% to RM122.59 million from RM102.24 million for 2QFY17. The stronger performance was attributed to higher contribution from the trading segment on the back of higher demand. This was supported further by higher average selling prices strengthening profit margins.
The stock rose 10 sen or 5.32% to close at RM1.98, leaving it with a market capitalisation of RM258.84 million.
Choo Bee was last traded at 0.43 times its book value.