Stock With Momentum: JF Technology

This article first appeared in The Edge Financial Daily, on August 17, 2018.
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JF Technology Bhd (-ve)
TRADING of shares in JF Technology (fundamental: 3/3, valuation: 1.10/3) triggered our momentum algorithm yesterday for the first time this year. The group saw 1,883,500 shares traded compared to its 200-day average of 105,782.5.

JF Technology’s profit was down 30.3% to RM1.08 million in its third quarter ended March 31, 2018 from RM1.56 million a year ago.

The group designs and manufactures high-performance test sockets and other materials for semiconductor giants.

The group attributed the decrease in net profit to the loss in foreign exchange due to strengthening of the ringgit against the US dollar, and the increase in legal fees for the ongoing material litigation with Johnstech International Corp in the US which amounted to RM0.25 million during the quarter under review.

The stock rose 15.5 sen or 20.13% to close at 92.5 sen, giving it a market capitalisation of RM194.25 million. JF Technology was last traded at 6.2 times its book value.