Stock With Momentum: CJ Century Logistics Holdings

This article first appeared in The Edge Financial Daily, on August 21, 2018.
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CJ Century Logistics Holdings Bhd (-ve)
TRADING of the shares in CJ Century Logistics Holdings Bhd (fundamental: 1.95/3, valuation: 1.4/3) triggered our momentum algorithm yesterday for the first time this year. The group saw 1,957,200 shares traded compared with its 200-day average of 292,754.5. CJ Century posted a 45.2% drop in net profit to RM2.66 million for the first quarter ended March 31, 2018 (1QFY18) from RM4.85 million a year ago. This was despite the logistics company’s revenue rising 30.6% to RM92.73 million from RM71.03 million in 1QFY17, due to higher activities in its procurement logistics services segment.

The group said the logistics sector is expected to remain challenging in 2018. It will continue to leverage on its extensive customer base and internal strength. It intends to tap into the extensive network and infrastructure of its major shareholder, South Korea’s CJ Logistics Group. The stock rose 4.5 sen or 6.47% to close at 74 sen, giving it a market capitalisation of RM291.46 million. CJ Century was last traded at 0.9 time its book value.