This article first appeared in The Edge Financial Daily on April 20, 2018

Deleum Bhd (-ve)

SHARES in Deleum Bhd (fundamental: 1.8/3, valuation: 2/3) triggered our proprietary momentum algorithm yesterday for the first time this year, closing up eight sen or 7.34% at RM1.17, giving it a market capitalisation of RM477.12 million.

A total of 3.4 million shares changed hands versus the counter’s 200-day average volume of 406,793 shares. Deleum’s net profit grew 36.2% to RM13.46 million in the fourth quarter financial year ended Dec 31, 2017 (4QFY17) from RM9.88 million a year ago, on better sales mixed with higher margins earned from the supply of local field service representative, parts, repairs and maintenance. Its quarterly revenue, however, declined 15.6% to RM169.85 million from RM201.29 million a year earlier.

For the full FY17, Deleum’s net profit rose 21.7% to RM32.27 million from RM26.51 million in FY16, while revenue fell 12.3% to RM534.06 million from RM608.65 million.

The stock is currently trading at 1.46 times its book value based on its latest traded price.