This article first appeared in The Edge Financial Daily on July 5, 2019

Hiap Huat Holdings Bhd (+ve)

TRADING of shares in Hiap Huat Holdings Bhd (fundamental: 1.65/3, valuation: 1.7/3), which rose half a sen or 4.35% to close at 12 sen yesterday, triggered our momentum algorithm for the first time this year.

At the closing bell, Hiap Huat recorded a total trading volume of 3.9 million shares, sharply higher than its 200-day average of 555,059 shares.

Hiap Huat is a licensed scheduled waste management and industrial waste recycling company.

For the first financial quarter ended March 31, 2019, the company posted a net profit of RM1.67 million, more than eight times the RM198,000 reported a year ago, thanks to a different product mix, and lower professional fees, finance cost and impairment of trade receivables that offset higher administrative expenses. However, the company also faced higher distribution cost as commission and agent fees rose.

Meanwhile, revenue rose 62.17% to RM15.18 million from RM9.36 million on higher sales of recycled petroleum products and scheduled waste collection services.