Stock With Momentum: Focus Point Holdings

This article first appeared in The Edge Financial Daily, on January 13, 2020.
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Focus Point Holdings Bhd (+ve)
TRADING of shares in Focus Point Holdings Bhd (fundamental: 1.1/3, valuation: 2/3) triggered our momentum algorithm last Friday for the first time this year. In 2019, it triggered the algorithm nine times.

The stock rose eight sen or 20% to close at 48 sen last Friday, with a market capitalisation of RM105.6 million. A total of 6.8 million shares were crossed, sharply higher than the counter’s 200-day average trading volume of 534,479 shares.

After successive losses in 2016 and 2017, things have started to turn around for Focus Point. The group, for the financial year ended Dec 31, 2018 (FY18), reported a record net profit of RM7.1 million on the back of a record revenue of RM179.27 million.

This momentum continued into FY19, with the first-quarter net profit surging 92.4% to RM2.15 million, while revenue increased 11.6% to RM45.73 million. Focus Point president and chief executive officer Datuk Liaw Choon Liang attributed the turnaround to the abolishment of the goods and services tax on June 1, 2018.