Stock With Momentum: A&M Realty

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This article first appeared in The Edge Financial Daily, on April 11, 2017.


A&M Realty Bhd’s (-ve)
A&M Realty Bhd’s (valuation: 1.1/3, fundamental: 2.15/3) counter gained 3.27% or five sen to close at RM1.58 yesterday. The counter triggered our momentum algorithm for the second time this year, having 1.5 million shares traded — over nine times its 200-day average volume.

The property developer is seen as an immediate beneficiary of Malaysian government’s plan to develop a maritime city on Carey Island, having own 769ha of land on the island located south of Port Klang.

Taking the cue from the surrounding mega project, A&M, which also operates Amverton Cove Golf & Island Resort on the island, will develop bungalows, serviced apartments, a water theme park and community living development for retirees within the next two years.

While A&M’s net profit retreated by 14.7% to RM20.07 million for its financial year ended Dec 31, 2016 from a year ago, its share price has gained 58% year to date at RM1.58.