This article first appeared in The Edge Financial Daily on November 20, 2017

Formosa Prosonic Industries Bhd (+ve)

SHARES in Formosa Prosonic Industries Bhd (fundamental: 2.5/3, valuation: 2/3), which triggered our momentum algorithm last Friday for the 13th time this year, closed 12 sen or 7.55% higher at RM1.71, after 3.15 million shares were done, exceeding the counter’s 200-day average volume of 775,059.5 shares.

Formosa Prosonic’s net profit grew 98% to RM14.58 million in the third financial quarter ended Sept 30, 2017 (3QFY17) from RM7.35 million a year ago, while revenue for 3QFY17 increased by 43% to RM153.3 million versus RM107.26 million. For the nine-month period ended Sept 30, 2017, the group’s net profit jumped 186% to RM31.93 million versus RM11.18 million a year earlier, while revenue came in 31% higher at RM331.33 million from RM252.5 million. The group attributed the better performance mainly to higher sales volume and a favourable sales mix, as well as growth in sales of musical instrument components.

The group is primarily involved in the manufacturing and sale of high-quality speaker systems.

At the current share price, Formosa Prosonic is trading at 1.58 times its book value.