EG Industries Bhd (+ve)
TRADING of shares in EG Industries Bhd (fundamental: 0.55/3, valuation: 1.1/3) triggered our momentum algorithm yesterday for the fifth time this year.
The stock closed 1.5 sen or 3.23% higher at 48 sen, with 3.12 million shares traded, compared with the average 614,433 shares recorded in the past 200 days.
For the fourth financial quarter ended June 30, 2019, the group’s net profit fell 42% to RM1.5 million from RM2.59 million a year ago, which it said was due to the increase in minimum wage and higher operating expenses. This was despite revenue rising 8.6% to RM280.55 million, from RM258.3 million a year ago, on higher sales of new products. The quarterly results dragged its full-year net profit down 31% year-on-year to RM12.8 million from RM18.48 million, while revenue was down marginally at RM1.01 billion, versus RM1.02 billion previously.
Moving forward, the group said, it will continue enhance its product mix to focus on high-margin operations.