This article first appeared in The Edge Financial Daily on February 15, 2018

Pansar Bhd (-ve)
Shares in hardware and building products supplier Pansar Bhd (fundamental: 1.45/3, valuation: 0.8/3) triggered our momentum algorithm yesterday for the fifth time this year.

The stock closed two sen or 2.7% higher at 76 sen after some 4.5 million shares changed hands, versus its 200-day average volume of 334,824 shares.

On Tuesday, the Sarawak-based group announced it had been appointed by construction equipment manufacturer JCB as its official dealer in Sabah and Sarawak.

JCB said Pansar will provide their customers in plantations, construction, infrastructure and mining with access to a wide range of JCB’s products, as well as delivering maintenance services and comprehensive availability of spare parts to local businesses.

In the first six financial months ended Sept 30, 2017 (1HFY18), Pansar’s net profit grew 48% to RM4.55 million against RM3.07 million, mainly attributed to better share of results of an associate, higher write back of impairment losses on receivables as well as a significant decline in foreign exchange translation losses and net impairment losses on receivables. Cumulative revenue rose to RM187.4 million from RM183.45 million.