This article first appeared in The Edge Financial Daily on March 2, 2020

Kanger International Bhd (+ve)

TRADING of shares in Kanger International Bhd (fundamental: 0.85/3, valuation: 0.3/3) triggered our momentum algorithm last Friday for the third time this year. The company’s share price closed unchanged at 11.5 sen. Some nine million shares changed hands, more than its 200-day average trading volume of 2.42 million shares. The stock has jumped over 155% in the past 12 months.

Kanger posted a net profit of RM4.84 million for the fourth quarter ended Dec 31, 2019 (4QFY19), compared to a net loss of RM4.54 million for 4QFY18, despite revenue dipping slightly to RM15.69 million from RM15.7 million. The improved earnings were mainly due to the recognition of a RM5.2 million cash incentive from the local authority of Jingzhou for the group’s continued investment there.

For full FY19, the group returned to the black with a net profit of RM8.82 million, versus a net loss of RM1.71 million for FY18, as revenue grew 13.9% to RM65.05 million from RM57.13 million.