Stock With Momentum: Gopeng

This article first appeared in The Edge Financial Daily, on May 15, 2017.
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Gopeng Bhd (-ve)
SHARES in Gopeng Bhd (fundamental: 1.5/3, valuation: 1.8/3) triggered our proprietary momentum algorithm last Friday.

The counter closed unchanged at RM1.30, with 87,500 shares traded, exceeding its 200-day average volume of 11,981 shares.

The group is principally involved in oil palm cultivation, property development and investments in short-term instruments.

Gopeng reported a 33.4% drop in its net profit for the fourth quarter ended Dec 31, 2016 (4QFY16) to RM759,000 from RM1.14 million in 4QFY15, while its operating profit increased to RM835,000 from RM149,000 a year earlier.

This was despite quarterly revenue surging 91.1% to RM3.51 million from RM1.84 million in 4QFY15.

The higher revenue and operating profit recorded in the current quarter under review was contributed by higher fresh fruit bunch prices and higher income derived from the group’s short-term investments.

At the current share price, Gopeng is trading at 0.74 times its book value.