Guan Chong Bhd (-ve)
TRADING of the shares in Guan Chong Bhd (fundamental: 0.9/3, valuation: 1.5/3) triggered our momentum algorithm yesterday for the fourth time this year.
The counter fell seven sen or 1.42% to close at RM4.85, with 3.6 million shares done, about six times higher than its 200-day average volume of 611,465 shares. The stock has surged 76% year to date, from when it was trading at RM2.75.
The cocoa grinder said its net profit rose 42% year-on-year to RM61 million for the second quarter ended June 30, 2019 (2QFY19) from RM43.03 million, thanks to higher sales of cocoa products, which pushed revenue up 53% to RM753.06 million from RM491.58 million.
The stronger 2QFY19 profit raised its cumulative net profit for the first six months of FY19 up 39% y-o-y to RM114.14 million, from RM82.36 million. Revenue climbed at the same rate to RM1.4 billion, from RM1.01 billion.