This article first appeared in The Edge Financial Daily, on July 12, 2016.

Tiong Nam Logistics Holdings Bhd (-ve)

SHARES in Tiong Nam Logistics Holdings Bhd (fundamental: 1.1/3, valuation: 1.8/3) triggered our momentum algorithm yesterday, also for the first time this month. The counter closed eight sen or 5.19% higher at RM1.62, with 4.4 million shares traded. In comparison, it saw an average of 636,502 shares traded in the last 200 days. The logistics and warehousing services provider posted a net profit of RM36.55 million for the fourth quarter ended March 31, 2016, up 2.81% from RM35.55 million a year ago.

Revenue, however, fell 33.91% to RM126.1 million, from RM190.81 million.

For the full financial year ended March 31, 2016 (FY16), Tiong Nam’s net profit rose 9.25% to RM79.62 million, from RM72.88 million in FY15, mainly due to lower income tax expenses. Revenue, however, declined 7.31% to RM572.8 million, from RM618 million.

The stock is currently trading at a trailing 12-month price-earnings ratio of 8.06 times and is at 1.13 times book value.