Stock With Momentum: GPA Holdings

This article first appeared in The Edge Financial Daily, on April 18, 2019.
-A +A

GPA Holdings Bhd (-ve)

GPA Holdings Bhd (fundamental: 1.2/3, valuation: 0.9/3), which has been picked by our momentum algorithm yesterday for the fifth time this year, closed unchanged at 11 sen yesterday after 1.55 million shares were done — significantly higher than its 200-day average volume of 252,346.5 shares.

The group manufactures automotive batteries for the domestic and export markets. It also makes rechargeable maintenance-free sealed lead acid batteries used as a back-up power source for standby and cyclical applications.

On March 6, GPA ceased trading and distributing personal care products under its subsidiary Kenola Sdn Bhd to mitigate its negative impact and losses on the group.

While its financial year 2019 (FY19) earnings are expected to be affected by an impairment loss and retrenchment cost to be incurred, the group expects its FY20 operating results to improve.

As at yesterday, its shares were trading equal to its net book value.