This article first appeared in The Edge Financial Daily on October 31, 2018
Permaju Industries Bhd (+ve)
TRADING of shares in Permaju Industries Bhd (fundamental: 0.75/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the fourth time this year.
At market close, the stock closed 0.5 sen or 1.85% higher at 27.5 sen, with 7.6 million shares done, much higher compared to the counter’s 200-day average of 2.27 million shares.
In the second quarter ended June 30, 2018 (2QFY18), the group’s net loss narrowed to RM751,000 from RM1.4 million a year ago, as it recorded higher automotive sales. Quarterly revenue grew 10% to RM20.59 million from RM18.66 million previously.
For the first half of FY18, the group reported a net loss of RM3.04 million compared with a net loss of RM3.44 million a year ago, as revenue rose 12% to RM35.57 million from RM31.71 million.
Permaju Industries is currently trading at 0.39 times its net book value.