This article first appeared in The Edge Financial Daily on August 1, 2019

Kanger International Bhd (-ve)
TRADING of shares in Kanger International Bhd (fundamental:0.65/3, valuation:0.9/3) triggered our momentum algorithm yesterday for the second time this year.

The last time the counter triggered the algorithm was on July 8.

The counter closed 6.67% or half a sen higher at eight sen, giving it a market capitalisation of RM71.51 million. A toal of 17.36 million shares were traded in contrast to its 200-day average trading volume of 1.38 million shares.

For the first quarter ended March 31, 2019 (1QFY19), the group’s net profit ballooned to RM1.37 million, from RM362,000 a year ago.

Quarterly revenue rose 42.7% to RM18.04 million, from RM12.65 million in 1QFY18.

The group attributed the higher earnings to an increase in sales within the Chinese market, born out of increased marketing efforts.

It added that another reason for the higher net profit was due to its higher revenue and the lack of expenses incurred in relation to the drawdown of redeemable convertible notes in 1QFY18.