Aluminium Company of Malaysia Bhd (-ve)
SHARES in Aluminium Company of Malaysia Bhd (Alcom) (fundamental: 2.5/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the second time this month and sixth time this year. The stock closed up 6.19% or 13 sen at RM2.23 sen yesterday, after close to three million shares were traded, compared with its 200-day average volume of 444,027 shares.
On June 22, Alcom managing director Heon Chee Syong told reporters the group is bullish this year on maintaining its profit momentum achieved in its financial year ended March 31, 2017, thanks to growing sales of its coated fin stock on the back of growing demand for air conditioners worldwide. Heon said the group is hopeful of its business’ future prospects due to rising demand for air conditioners, as coated fin stock is cheaper to produce, making air conditioners more affordable.
Alcom exports to most of the leading air-conditioner manufacturers across Asia and Europe.
At the current share price, Alcom is trading at 1.58 times its book value.