Stock With Momentum: Kelington Group

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This article first appeared in The Edge Financial Daily, on April 5, 2017.

 

Kelington Group Bhd (-ve)
SHARES in Kelington Group Bhd (fundamental: 1.7/3, valuation: 0.5/3) triggered our momentum algorithm yesterday as the counter closed three sen or 5.08% higher at 62 sen, with a market capitalisation of RM140.2 million.

The stock saw some 6.94 million shares traded compared with a 200-day average trading volume of 1.16 million shares.

On Monday, the gas and chemical delivery solutions provider secured two new contracts in China from a global multinational corporation semiconductor manufacturer worth RM19.3 million. The contracts were secured via its wholly-owned subsidiary Kelington Engineering (Shanghai) Co Ltd, and they are for the installation of an ultra-high purity gas delivery system.

The group said the contracts commenced immediately with targeted completion in December this year.

Kelington had bagged up to RM76.05 million worth of new orders in the first quarter of 2017, bringing its current outstanding order book total to RM239.3 million.