Stock With Momentum: PBA Holdings

This article first appeared in The Edge Financial Daily, on September 12, 2018.
-A +A

PBA Holdings Bhd (-ve)

Trading of shares in PBA Holdings Bhd (fundamental: 2/3, valuation: 1.8/3) triggered our stocks with momentum algorithm last Friday for the second time this month.

The counter closed unchanged at RM1.28 with a market capitalisation of RM423.68 million, with 1.03 million shares traded, higher than its 200-day average volume of 71,391 shares.

PBA supplies water and is the licenced water operator for Penang. It also has a 26% stake in Pinang Water Ltd, which supplies treated water to Yichun City in China.

The group’s net profit for the second quarter ended June 30, 2018 (2QFY18) leaped 51.9% to RM16.40 million from RM10.79 million a year ago, mainly due to higher water consumption by both domestic and trade consumers.

Quarterly revenue was 13.3% higher at RM88.78 million compared with RM78.36 million in 2QFY17.