This article first appeared in The Edge Financial Daily, on December 14, 2015.

Dolomite Corporation Bhd (+ve)

SHARES of thinly-traded Dolomite (Fundamental: 0.65/3, Valuation: 1.7/3) triggered our momentum algorithm for the first time on Friday. The stock closed up 9% at 42.5 sen in active trade, with volume 83 times the 200-day average volume. There were no new corporate developments.

Dolomite is primarily involved in the manufacture and sale of quarry products, hot mixes and ready-mixed concrete. This segment accounted for 59.5% of 9M2015 revenues with the balance coming from property development and construction. 

For 9M2015, revenue increased 9.1% y-y to RM68.4 million while profit before tax jumped an outsized 315.6% to RM13.3 million. This was mainly due to forex gains of RM16.6 million. Excluding this, the company would have had a loss before tax of RM3.3 million. 

Notably, Dolomite’s newly commissioned coal-fired thermal power plant in China commenced electricity production in July this year. Moving forward, the plant is expected to generate a new stream of recurring income.