Kimlun Corp Bhd (+ve)
TRADING of shares in Kimlun Corp Bhd (fundamental: 0.8/3, valuation: 2.4/3) triggered our momentum algorithm yesterday for the first time this year.
Kimlun closed up seven sen or 5.6% at RM1.32, after 2.56 million shares were traded, versus the counter’s 200-day average volume of 144,393.5 shares. The group is an engineering and construction services provider specialising in infrastructure and building construction, project management, industrial building systems and manufacture of precast concrete products.
Last Friday, the government announced the resumption of the East Coast Rail Link, albeit at a lower RM44 billion. The 648-km link will start in Selangor before going through Putrajaya, Negeri Sembilan, Pahang and Terengganu, and finally end in Kelantan. The company has previously shown interest in the project, especially in terms of supplying precast concrete products.
As of yesterday, Kimlun shares were trading at 0.66 times its net book value.