Stock With Momentum: Matang

This article first appeared in The Edge Financial Daily, on August 29, 2018.
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Matang Bhd (-ve)

TRADING of shares in Matang (fundamental: N/A, valuation: N/A) triggered our momentum algorithm yesterday for the first time this year. The group saw 8.87 million shares done, compared with its 200-day average of 2.68 million.

On Monday, Matang announced a 25% jump in its net profit for the fourth quarter of financial year 2018 ended June 30 (4QFY18), to RM578,000 from RM463,000 a year ago, as revenue rose 12% to RM2.48 million from RM2.22 million, mainly from higher volume of fresh fruit bunches harvested and sold.

The stock rose closed unchanged at eight sen yesterday, giving it a market capitalisation of RM144.8 million.

For the full FY18, the group’s net profit jumped to RM4.09 million from RM1.26 in FY17, as revenue rose 22% to RM11.84 million from RM9.67 million.