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This article first appeared in The Edge Financial Daily on June 4, 2018

Ewein Bhd (+ve)
SHARES in Ewein Bhd (fundamental: 1.3/3, valuation: 2/3) triggered our proprietary momentum algorithm last Friday for the second time this year.

The stock closed nine sen or 13.6% higher at 71 sen, giving it a market capitalisation of RM214.12 million. A total of 39 million shares changed hands, exceeding its 200-day average volume of 975,720 shares.

Ewein’s net profit for the first quarter ended March 31, 2018 (1QFY18) jumped over four times to RM12.05 million from RM2.53 million a year ago, on higher sales of properties and faster construction progress. Quarterly revenue also more than doubled to RM56.46 million from RM22.76 million in 1QFY17.

The property developer, which is also involved in precision sheet metal fabrication, said the property market condition is improving this year. Therefore, it is “cautiously optimistic” about the performance of its property development segment for the rest of FY18.

As for its manufacturing business, Ewein said it remains positive due to improving demand in the electronics and electrical industry.

At the current share price, the group is trading at one time its book value.

 

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