Stock With Momentum: GUH Holdings

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This article first appeared in The Edge Financial Daily, on February 6, 2017.

 

GUH Holdings Bhd (-ve)

SHARES in GUH Holdings Bhd (fundamental: 2.35/3, valuation: 2/3) triggered our momentum algorithm last Friday for the first time this year.

The counter closed half a sen or 0.56% higher at 90 sen last Friday, on a volume of 531,900 shares, far exceeding its 200-day average volume of 131,408 shares.

In a filling with Bursa Malaysia on Nov 21, the printed circuit board maker saw its net profit increase by 48.87% to RM4.22 million or 1.6 sen a share in its third quarter ended Sept 30, 2016 (3QFY16) from RM2.83 million or 1.07 sen a share a year ago.

The group also reported a lower tax expense for 3QFY16 of RM1.18 million compared with RM2.47 million in 3QFY15.

The company also said that its loss before tax for its property development division decreased to RM100,000 from RM500,000 mainly due to the disposal of higher margin commercial property.

At the current share price, GUH is trading at 0.46 times its book value.