This article first appeared in The Edge Financial Daily, on July 1, 2016.

Hai-O Enterprise Bhd (+ve)

SHARES in Hai-O Enterprise Bhd (fundamental: 3/3, valuation: 2.1/3) triggered our momentum algorithm yesterday for the second time in June.

The counter closed six sen or 2.2% at RM2.79, after some 468,800 shares were traded. In comparison, its 200-day average volume is only around 67,775 shares.

Hai-O’s net profit grew 24.44% to RM11.2 million in the fourth quarter ended April 30, 2016 (4QFY16), from RM9 million a year ago, on higher revenue from its multilevel marketing division. Revenue rose 25.85% to RM88.6 million, from RM70.4 million in 4QFY15.

The company has proposed a final single-tier dividend of 11 sen per share for FY16.

For the full year, its net profit grew 22.18% to RM36.36 million, from RM29.76 million in FY15. Revenue rose 24.27% to RM298.05 million, from RM239.85 million in FY15.

The stock currently trades at a trailing 12-month price-earnings ratio of 15.34 times and is 2.1 times its book value. Its trailing 12-month dividend yield is at 5.53%.