Stock With Momentum: Astino Bhd

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This article first appeared in The Edge Financial Daily, on April 5, 2017.


Astino Bhd (-ve)
SHARES in Astino Bhd (fundamental: 2/3, valuation: 2.4/3) triggered our momentum algorithm yesterday as the counter closed nine sen or 8.72% higher at RM1.06, for a market capitalisation of RM289.7 million.

The stock saw 9.53 million shares traded compared with a 200-day average trading volume of 584,473 shares. The metal roofing sheet provider’s net profit for its second financial quarter ended Jan 31, 2017 (2QFY17) rose 74.74% to RM12.09 million from RM6.92 million in 2QFY16 on improved overseas sales and profit margin. Revenue grew 12.28% to RM133.91 million from RM119.26 million.

For the cumulative six-month (1HFY17) period, net profit jumped 47.26% year-on-year to RM17.67 million from RM11.998 million a year ago, while revenue climbed 5.4% to RM247.34 million from RM234.67 million in 1HFY16. Moving forward, Astino expects the local steel industry to experience a squeeze in profit margin due to the weak domestic demand, high production costs and volatility of foreign currency.