Stock With Momentum: DGB Asia

This article first appeared in The Edge Financial Daily, on July 19, 2018.
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DGB Asia Bhd (-ve)

TRADING in DGB Asia Bhd (fundamental: 1.5/3, valuation: 0.6/3) shares triggered our proprietary momentum algorithm yesterday for the fourth time this year.

The stock closed one sen or 3.33% lower at 14 sen, with 9.54 million shares traded, exceeding its 200-day average volume of 19,600,988 shares.

DGB returned to the black in the fourth financial quarter ended March 31, 2018 (4QFY18), posting a net profit of RM1.05 million, compared to a net loss of RM415,000. Quarterly revenue, however, fell 78.5% to RM916,000 from RM4.25 million in 4QFY17.

The improved quarterly earnings helped boost its net profit for the full FY18 to RM787,000 from RM46,000 in FY17. Revenue dropped 71.5% to RM3.45 million from RM12.1 million.

At the current share price, the automatic identification and data capture solution provider is trading at 1.56 times its book value, giving it a market capitalisation of RM109.65 million