This article first appeared in The Edge Financial Daily on October 7, 2019

GUH Holdings Bhd (-ve)
TRADING of shares in GUH Holdings Bhd (fundamental: 1.85/3, valuation: 0.9/3) triggered our momentum algorithm last Friday for the first time this year. The last time the company triggered the algorithm was on Aug 21, 2018.

The counter closed half a sen or 1.01% higher at 50 sen last Friday, with a market capitalisation of RM138.95 million. It saw 300,700 shares traded, exceeding its 200-day average trading volume of 30,326 shares.

For the second quarter ended June 30, 2019 (2QFY19), GUH’s net profit surged to RM3.8 million from RM868,000 a year ago. However, revenue for the quarter was flattish at RM87.18 million compared with RM87.95 million for 2QFY18. The group attributed its strong quarterly earnings to higher contributions from the electronic and utilities divisions, which were partly offset by a negative contribution from its property division.

For the first half of FY19, the group posted a net profit of RM4.2 million compared to a net loss of RM592,000 a year ago. Revenue declined 2% year-on-year to RM168.15 million.