This article first appeared in The Edge Financial Daily on June 2, 2017

Aluminium Co of Malaysia Bhd (Alcom) (+ve)

SHARES in Aluminium Co of Malaysia Bhd (Alcom) (fundamental: 2.5/3, valuation: 0.9/3) triggered our algorithm yesterday for the fifth time this year, closing up 10 sen or 6.76% at RM1.58. The stock saw some 2.79 million shares traded, exceeding its 200-day average volume of 343,708.5 shares.

Alcom saw net profit in the financial year ended March 31, 2017 (FY17) rise 354.7% to RM11.69 million from RM2.57 million in FY16, while revenue climbed 10.3% to RM317.13 million against RM287.40 million the previous year. Reviewing its performance, Alcom said the better profitability performance was largely attributable to the higher contribution generated from coated fin shipment volume, which was 15% higher, and lower depreciation charges for the final quarter of FY17.

Alcom manufactures aluminium rolled products used in aluminium building structures, architectural facades, aluminium coil sheets, bare and pre-coated finstocks, heavy gauge foil, and stamps parts for flat-screen TVs. At its current share price, Alcom is trading at 1.18 times its book value.