Stock With Momentum: Mycron Steel

This article first appeared in The Edge Financial Daily, on July 30, 2018.
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Mycron Steel Bhd (+ve)

TRADING of shares in Mycron Steel Bhd (fundamental: 1.4/3, valuation: 1.5/3) triggered our momentum algorithm last Friday for the first time this year.

The steel manufacturing firm saw 2.18 million shares traded, equivalent to 0.77% of its share capital, and exceeding the counter’s 200-day average of 271,346.

The Main Market-listed stock dropped one sen or 2.06% to close at 47.5 sen last Friday, with a market capitalisation of RM134.68 million. Mycron was last traded at 0.35 times its book value.

For the third financial quarter ended March 31, 2018, Mycron’s net profit plunged 47.32% to RM3.88 million, from RM7.36 million, dragged by lower sales volume in the cold rolled and steel tube segments.

Quarterly revenue, however, rose 7.67% to RM206.88 million, from RM192.14 million a year ago, thanks to the higher average unit selling price of its products. Mycron is hopeful of sustaining a positive performance, barring any severe external shocks.