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This article first appeared in The Edge Financial Daily on January 31, 2019

Vsolar Group Bhd (+ve)

TRADING of the shares in Vsolar Group Bhd (fundamental: 0.6/3, valuation: 0/3) triggered our momentum algorithm yesterday for the fourth time this year.

The stock gained one sen sen or 7.41% to close at 14.5 sen yesterday, with 3.77 million shares traded, giving a market capitalisation of RM55.98 million.

For the first financial quarter ended Sept 30, 2018, the group’s revenue fell 57.7% to RM140,000 from RM331,000 in the previous corresponding quarter due to lower sales generated from the information technology products division.

The group also posted a net loss of RM355,000 versus a net profit of RM135,000 a year earlier.

Nevertheless, the group’s management believes solar and biomass/biogas renewable energy (RE) have a favourable outlook based on the increasing demand for RE, as it believes these two are the stable RE sources for the future. At the current share price, Vsolar is trading at 3.33 its book value.

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