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This article first appeared in The Edge Financial Daily on January 21, 2020

ATA IMS Bhd (-ve)
SHARES in electronics manufacturing services provider ATA IMS Bhd (fundamental: 1.3/3, valuation: 0.9/3), which closed one sen or 0.56% higher at RM1.80 yesterday, triggered our momentum algorithm for the first time since November 2018.

At the closing bell, ATA IMS — now valued at RM2.17 billion — recorded a total trading volume of 1.99 million shares, sharply higher compared with its 200-day average of 557,521 shares.

Shares in ATA IMS recovered from their 2019 low of RM1.318 in September. The company has managed to secure five new customers, namely Sagemcom, Schneider Electric, Swift Labs, ecobee and Cricut, with the production for all the new customers slated to start this year.

The combined revenue contribution from these customers is expected to be around RM150 million to RM200 million in the first year of production, said AmInvestment Bank Bhd, which is maintaining its forecasts for ATA IMS’ financial year ending March 31, 2021, as it has factored in the top-line growth.

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