Stock With Momentum: PMB Technology Bhd (-ve)

SHARES in PMB Technology Bhd (valuation: 1.4/3, fundamental: 0.8/3) breached another all-time high yesterday since their listing in 2004, continuing the stock’s latest upward trend since June 6.

The counter triggered our algorithm momentum for the second time this year, after its shares hit their intraday high — up 12.2% or 25 sen at noon market break — before closing 8.29% or 17 sen higher at RM2.22. Year to date, the counter has gained 44.16%.

About 479,300 shares traded yesterday, over eight times the counter’s 200-day average of 40,659 shares. At press time, the aluminium products manufacturer cum construction company had a market capitalisation of RM172 million.

On June 7, PMB Technology completed the purchase of a 41,799ha, RM16 million industrial land alongside manufacturing assets in Penang, meant to increase production capacity of its indirect wholly-owned aluminium manufacturing unit Everlast Access Technologies Sdn Bhd.

Meanwhile, higher aluminium price has caused PMB Technology’s net profit in its first quarter ended March 31, 2017 (1QFY17) to slide 1.68% to RM2.35 million from RM2.39 million a year ago. The higher cost has yet to be passed on fully to customers, said the company.

Meanwhile, its quarterly revenue jumped 36.35% to RM100.83 million, against RM73.95 million in 1QFY16, backed by accelerated progress of some ongoing projects under its construction and fabrication segment. It is the sector that PMB is optimistic about growth for the year, amid active government roll-out of infrastructure and affordable housing projects.