ECS ICT BHD (-ve)
ECS (Fundamental: 2.0/3, Valuation: 2.4/3) was picked by our momentum algorithm for the fifth time since March 6, rising 10.5% over the period. The stock closed unchanged at RM1.69 last Friday. 

The latest catalyst could be attributed to the announcement of its 1Q2015 earnings results last Thursday. For 1Q2015, net profit surged 96.2% y-o-y to RM9.4 million on the back of a 46.2% increase in sales to RM522.9 billion, mainly due to its ICT distribution and enterprise systems divisions.

With over 5,000 resellers covering 40 well-known brands, ECS is Malaysia’s largest distributor of ICT products such as notebooks, personal computers, software, smartphones and tablets. 

It has a debt-free balance sheet with cash of RM99.3 million or 32.7% of its market capitalisation. ROE was a solid 14.2% in 2014.

The stock is trading at a trailing 12-month P/E of 10.3 times and 1.35 times book. Dividends total 6 sen per share for 2014, giving a yield of 3.6%.

This article first appeared in The Edge Financial Daily, on May 11, 2015.