Stock With Momentum: Efficient E-Solutions Bhd

This article first appeared in The Edge Financial Daily, on July 26, 2018.
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Efficient E-Solutions Bhd (-ve)
TRADING of shares in Efficient E-Solutions Bhd (fundamental: 1.05/3, valuation: 2.1/3) triggered our momentum algorithm yesterday for the second time this year. The company saw 3.13 million shares traded, exceeding the counter’s 200-day average of 1.71 million shares.

The stock gained 1.5 sen, or 6%, to close at 26.5 sen, valuing the business process outsourcing firm at RM187.92 million.

Efficient currently trades at 1.23 times its book value.

For the first quarter ended March 31, 2018, Efficient’s net loss widened to RM1.67 million, from RM499,000 a year ago, on higher marketing and promotional expenses, as well as set-up cost related to cybersecurity services.

Quarterly revenue dropped 5.84% to RM839,000, from RM891,000, which was primarily due to a information technology services contract that has recently ended.

On prospects, Efficient said it is building up its distribution channel for managed security services, which has received positive response and interest from the market.