This article first appeared in The Edge Financial Daily on July 2, 2019

Jadi Imaging Holdings Bhd (+ve)

TRADING of shares in Jadi Imaging Holdings Bhd (fundamental: 1.2/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the first time this year.

The stock closed unchanged at five sen yesterday, with 6.25 million shares done, compared with the average 863,456 shares recorded in the past 200 days.

For the fourth quarter ended March 31, 2019, the toner manufacturer reported a net loss of RM2.92 million, narrowing from a net loss of RM11.11 million in the previous year as sales picked up in certain segments, but offset by higher production costs. Revenue dropped 4% year-on-year to RM11.78 million from RM12.24 million previously.

For the full year, it posted a net profit of RM459,000 against a net loss of RM10.65 million previously. Revenue fell 14% to RM47.79 million from RM55.75 million a year ago.

As global toner demand remains flat, Jadi said it has embarked on a transformation exercise to move downstream.