Stock With Momentum: Analabs Resources

This article first appeared in The Edge Financial Daily, on August 6, 2018.
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Analabs Resources Bhd (-ve)

Trading in the shares of Analabs Resources Bhd (fundamental: 2.35/3, valuation: 1.4/3), which closed three sen or 1.13% higher at RM2.69 last Friday, triggered our momentum algorithm for the second time since July 10.

The counter closed with a market capitalisation of RM150.16 million, after 513,200 shares crossed, significantly higher than its 200-day average trading volume of 22,119 shares.

On July 31, the waste management and chemical repackaging company announced its plans to undertake a one-for-one bonus issue of shares, to better reflect its current scale of operations and assets.

The proposed corporate exercise — expected to be completed in the fourth quarter of this year — will entail the issuance of 60.02 million bonus shares, doubling its current issued share capital to 120.05 million shares.

Analabs registered a full-year net profit of RM9.74 million for the financial year ended April 30, 2018, down 12.3% from RM11.11 million in the previous year.