This article first appeared in The Edge Financial Daily on May 4, 2017

Caring Pharmacy Group Bhd (-ve)

SHARES in Caring Pharmacy Group Bhd (fundamental: 2.2/3, valuation: 0.8/3), which triggered our momentum algorithm yesterday for the second time this year, climbed 15 sen or 8.72% to settle at RM1.87.

It saw 281,600 shares traded, compared with its 200-day average volume of 8,211 shares.

Last Friday, Caring announced its net profit grew 3.3 times to RM5.28 million in the third financial quarter ended Feb 28, 2017 (3QFY17), from RM1.62 million a year ago, on higher sales from existing outlets due to an aggressive and extensive promotional campaign launched during the year.

Quarterly revenue grew 11.9% to RM115.66 million from RM103.4 million in 3QFY16.

Caring also established two additional outlets but closed two others. As of Feb 28, 2017, it had 105 community pharmacies.

At the current share price, Caring is trading at 3.28 times its book value.