Stock With Momentum: Lee Swee Kiat Group

This article first appeared in The Edge Financial Daily, on July 5, 2018.
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Lee Swee Kiat Group Bhd (-ve)

SHARES in Lee Swee Kiat Group Bhd (fundamental: 2.5/3, valuation: 1.1/3) has triggered our proprietary momentum algorithm for the 16th time since January this year. The stock closed 6.5 sen or 7.26% higher at 96 sen on a volume of nine million shares, exceeding its 200-day average volume of 1.11 million shares.

For the first quarter ended March 31, 2018 (1QFY18), the mattress manufacturer’s net profit expanded close to five times to RM2.06 million from RM450,000 in 1QFY17. Revenue increased 60.8% to RM23.33 million versus RM14.51 million a year ago.

The company has not posted any significant announcements on Bursa Malaysia since. At its last price, Lee Swee Kiat Group was trading at 3.43 times its book value, with a market capitalisation of RM156.6 million.