This article first appeared in The Edge Financial Daily on June 13, 2017

Brem Holding Bhd (-ve)
SHARES in Brem Holding Bhd (fundamental: 1.55/3, valuation: 1.1/3) triggered our proprietary momentum algorithm yesterday. The stock went up 5.5 sen or 5.70% to close at RM1.02, with some 2.67 million shares traded, exceeding its 200-day average volume of 118,826.5 shares.

The group, which is principally involved in property development, civil engineering and construction works, reported a net loss of RM1.31 million in the fourth financial quarter ended March 31, 2017 versus a net profit of RM816,000 a year ago due to an inventory write-down of RM3.9 million in the property development segment.

However, quarterly revenue expanded by 131% to RM65.05 million, from RM28.14 million. For the full financial year ended March 31, 2017, its net profit plunged 71.2% to RM4.65 million from RM16.14 million due to an overall low contribution from each business segment. Revenue surged by 40.5% to RM175.55 million against RM124.97 million on higher revenue recorded from the construction segment.

At the current share price, Brem Holding is trading at 0.67 times its book value.