This article first appeared in The Edge Financial Daily on May 30, 2018

Handal Resources Bhd (+ve)
SHARES in Handal Resources Bhd (fundamental: 1.25/3, valuation: 0.9/3) triggered our momentum algorithm last Friday for the seventh time this year.

The stock closed 1.5 sen or 3.9% lower at 37 sen, after 1.47 million shares were traded, nearly five times its 200-day average volume of 314,161 shares.  At current share price, the group is trading at 0.62 times its book value, and has a market capitalisation of RM59.04 million.

For the first quarter ended March 31, 2018 (1QFY18), Handal reported a net loss of RM959,000 compared to a net profit of RM659,000 in the same quarter last year, as it recorded a lower operating income for the majority of its business segments, while incurring higher cost of sales and expenses.

Revenue shrank 2% year-on-year to RM14.11 million from RM14.33 million.

Handal expects the current financial year to be challenging in view of the global oil supply situation continuing to influence industry outlook, though it noted market conditions may improve with better oil prices.