Stock With Momentum: Homeritz Corp

This article first appeared in The Edge Financial Daily, on July 19, 2019.
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Homeritz Corp Bhd (+ve)

TRADING of shares in Homeritz Corp Bhd (fundamental: 1.95/3, valuation: 2.4/3) triggered our momentum algorithm yesterday for the fourth time this year. The counter closed up one sen or 1.4% at 72.5 sen yesterday, with a volume of 5.44 million shares, exceeding its 200-day average volume of 428,172 shares.

Homeritz saw its net profit grow 51.82% to RM7.01 million for the third quarter ended May 31, 2019, from RM4.62 million a year earlier, on improved margins. Quarterly revenue fell 5.71% to RM37.57 million from RM39.84 million previously. For the first nine months of financial year 2019 (9MFY19), the group’s net profit rose 19.27% to RM17.66 million, from RM14.81 million in the previous corresponding period, while revenue slid 9.69% to RM114.05 million, versus RM126.29 million.

The group approved a first interim single-tier tax-exempt dividend of two sen per share in respect of FY19.

At the current share price, Homeritz is trading at 1.39 times its book value.