Stock With Momentum: Kumpulan Perangsang Selangor

This article first appeared in The Edge Financial Daily, on June 26, 2018.
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Kumpulan Perangsang Selangor Bhd (-ve)

SHARES in Kumpulan Perangsang Selangor Bhd (KPS) (fundamental: 1.15/3, valuation: 2/3) triggered our proprietary momentum algorithm yesterday for the ninth time this year.

The counter closed seven sen or 4.09% higher at RM1.78, bringing it a market capitalisation of RM956.553 million. A total of 4.76 million shares changed hands, exceeding its 200-day average volume of 340,115 shares. The group’s shares were trading below its book value.

On June 5, KPS announced that Raja Datuk Idris Raja Kamarudin had resigned from his position as the chairman of the group. He was on the group’s board for seven years, since his appointment on March 18, 2011.

KPS net profit fell 34.6% for the first quarter ended March 31, 2018 (1QFY18) to RM13.21 million from RM20.21 a year ago, due to one-off financial charges incurred in the acquisition of electronics manufacturing service provider CPI (Penang) Sdn Bhd, coupled with higher raw material cost in the manufacturing and trading segment. Revenue, however, rose to RM95.84 million from RM76.75 million.

KPS expects business expansion of its subsidiary Century Bond Bhd will contribute to higher earnings in FY18 as it looks to extend the subsidiary’s footprint in the non-cement sector of Malaysia.