This article first appeared in The Edge Financial Daily on November 19, 2018
Formosa Prosonic Industries Bhd (-ve)
TRADING of shares in Formosa Prosonic Industries Bhd (fundamental: 2.5/3, valuation: 2.4/3) triggered our proprietary momentum algorithm last Friday for the second time this year.
The stock closed 15 sen or 9.32% higher at RM1.76, with 6.43 million shares done versus the counter’s 200-day average volume of 698,481 shares.
The sound system manufacturer’s net profit rose 14.3% to RM16.66 million for the third financial quarter ended Sept 30, 2018 (3QFY18) from RM14.58 million a year ago, on higher sales volume and a change in sales mix.
The group’s profit growth was partially offset by a lower US dollar against the ringgit and increased operating cost.
Quarterly revenue grew 25.3% to RM192.03 million from RM153.3 million for 3QFY17.
Formosa Prosonic is now trading at 1.52 times its net book value.