Stock With Momentum: DRB-Hicom Bhd

This article first appeared in The Edge Financial Daily, on July 11, 2019.
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DRB-Hicom Bhd (+ve)
One of the exciting developments over at DRB-Hicom Bhd (fundamental: 0.4/3, valuation: 1.2/3) is the encouraging pickup in vehicle sales by Proton Holdings Bhd last month.

Proton’s market share in June hit 18.1% — its highest since 47 months ago in July 2015 — as it continued to record sales growth even as total industry volume shrank by an estimated 30.8% year-on-year to 42,090 units that month.

Subsequently, the counter yesterday triggered our momentum algorithm for the second time this month as trading volume surged to over four times its 200-day average at 12.75 million shares to close down one sen or 0.41% at RM2.45.

Year to date, the counter has surged by 44.12%. Bloomberg data show that DRB-Hicom has four “buy” calls and two “hold” calls, with a target price ranging between RM1.78 and RM3.05 at an average of RM2.51 per share.