Stock With Momentum: Kumpulan Perangsang Selangor Bhd

This article first appeared in The Edge Financial Daily, on July 24, 2018.
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Kumpulan Perangsang Selangor Bhd (+ve)
TRADING of the shares in Kumpulan Perangsang Selangor Bhd (KPS) (fundamental: 1.15/3, valuation: 2/3) triggered our momentum algorithm yesterday for the 12th time this year. The company saw 3.68 million shares traded, equivalent to 0.69% of its share capital, exceeding the counter’s 200-day average of 479,641.5.

The stock rose four sen or 2% to close at RM2.02, valuing it at a market capitalisation of RM1.09 billion. KPS was last traded at 0.77 times its book value.

Last week, KPS’ indirect wholly-owned subsidiary CPI (Penang) Sdn Bhd proposed to buy a 4.5-acre (1.82ha) piece of land in the Bayan Lepas Industrial Park, Penang, for RM27.7 million, on which it intends to build a new electronic manufacturing services (EMS) factory.

The new land’s area is over three times its 1.4-acre land that currently houses its existing EMS facility.

KPS chief executive officer Ahmad Fariz Hassan said the land acquisition will allow CPI to expand its production capacity in order to meet growing demand in the EMS industry.