Homeritz Corp Bhd (-ve)
TRADING of shares in home furniture producer Homeritz Corp Bhd (fundamental: 1.95/3, valuation: 2.4/3) triggered our momentum algorithm yesterday for the seventh time this year.
The stock closed two sen or 2.88% higher at 71.5 sen, with 6.31 million shares traded, compared with the average 854,385 shares recorded in the past 200 days.
Homeritz’s net profit for the fourth financial quarter ended Aug 31, 2019 fell 29% to RM4.46 million from RM6.26 million for the previous year as volume sold declined, which caused revenue to retreat 16% to RM33.66 million from RM40.16 million. Full-year net profit rose 5% year-on-year to RM22.12 million from RM21.07 million, although revenue fell 11% to RM147.71 million from RM166.45 million, which the group attributed to strengthening of the US dollar.
For the coming year, the group said, it will continue to develop new products and derive better cost efficiencies and effective cost management across all functions.