This article first appeared in The Edge Financial Daily on October 3, 2017

Parkson Holdings Bhd (-ve)

SHARES in Parkson Holdings Bhd (fundamental: 0.8/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the first time this year. The counter closed up one sen or 1.6% at 64.5 sen yesterday, after 5.7 million shares were traded, compared with its 200-day average volume of 1.16 million shares.

Parkson’s net loss for the fourth quarter ended June 30, 2017 (FY17) narrowed by 5.9% to RM96.03 million, from RM102.06 million a year ago, as revenue climbed 10% to RM973.51 million year-on-year

from RM884.48 million.

The group’s annual net loss widened 24.48% to RM119.18 million for the financial year ended June 30 from RM95.74 million previously, primarily due to higher net loss in Malaysia on new stores and ventures.The group’s full-year segmental loss for its Indonesian operations had also widened on new stores’ losses and assets impairment from non-performing stores.

At the closing of 64.5 sen, Parkson is trading at 0.3 times its book value.