Stock With Momentum: Crest Builder Holdings

This article first appeared in The Edge Financial Daily, on March 19, 2019.
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Crest Builder Holdings Bhd (+ve)
TRADING of shares in Crest Builder Holdings Bhd (fundamental: 1.1/3, valuation: 3/3) triggered our momentum algorithm yesterday for the first time since August 2017.

The counter closed up 13 sen or 12.5% at RM1.17, with 6.9 million shares traded — exceeding its 200-day average volume of 263,638 shares.

Crest Builder saw its net profit double to RM16.79 million for the fourth quarter ended Dec 31, 2018 (4QFY18), from RM7.78 million last year mainly due to better profit margin from its construction division.

Quarterly revenue, however, was down 8.08% to RM142.8 million, against RM155.35 million in 4QFY17.

The group has recommended a first and final dividend of 4.5 sen per share for FY18.

For the full FY18, Crest Builder’s net profit grew 150.82% to RM70.38 million, from RM28.06 million a year ago, while revenue rose 19.49% to RM595.41 million versus RM498.29 million.

At the current share price, Crest Builder is trading at 0.41 times its book value.