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This article first appeared in The Edge Financial Daily on December 5, 2017

Tong Herr Resources Bhd (+ve)
SHARES in Tong Herr Resources Bhd (fundamental: 2.8/3, valuation: 2/3) triggered our momentum algorithm yesterday for the first time this month and eighth time this year.

The stock closed up 17 sen or 4.06% to RM4.36, after more than 375,800 shares were traded. For the third quarter ended Sept 30, 2017, Tong Herr’s net profit more than doubled to RM15.99 million from RM6.09 million a year ago, thanks to higher revenue — which rose 29% year-on-year (y-o-y) to RM185.52 million from RM143.47 million.

According to Tong Herr, the improvement in its quarterly revenue was largely due to higher sales volume and average selling prices for both its aluminium and fastener segments.

The group, which is involved in the business of manufacturing and exporting of stainless steel fasteners, also declared an interim dividend of 18 sen per share, payable on Dec 21, in respect of financial year 2017 (FY17).

For the cumulative nine months of FY17, net profit climbed 54% y-o-y to RM46.66 million from RM30.37 million, whereas revenue grew 21% from RM419.14 million to RM508.49 million.
 

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