Stock With Momentum: Focus Dynamics Group

This article first appeared in The Edge Financial Daily, on July 1, 2019.
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Focus Dynamics Group Bhd (-ve)
TRADING of shares in Focus Dynamics Group Bhd (fundamental: 0.95/3, valuation: 0/3), which triggered our proprietary momentum algorithm last Friday for the fourth time last month, closed up one sen or 5.41% at 19.5 sen, with a market capitalisation of RM398.29 million.

A total of 29.06 million shares were done, versus the counter’s 200-day average trading volume of 6.91 million shares.

The group is engaged in engineering services for energy efficiency management and manufacturing of variable speed drives and instruments for the control of industrial machines.

For the first quarter ended March 31, 2019, the group reported a net profit of RM617,000, up 68% from RM368,000 in the previous year, which it attributed to a higher revenue. Quarterly revenue rose 32% to RM9.95 million from RM7.55 million a year ago mainly due to a higher contribution from the food and beverage segment during the period.

As at last Friday, Focus Dynamics was trading at 9.56 times its net book value.