This article first appeared in The Edge Financial Daily on March 6, 2020

KKB Engineering Bhd (-ve)

KKB Engineering Bhd (fundamental: 1.5/3, valuation: 1.4/3) triggered our momentum algorithm yesterday for the third time since the start of this year.

The stock closed 7.8% higher at RM2.35, after a total of 2.59 million shares were traded, more than eight times its 200-day average volume of 349,638.5 shares.

KKB closed its financial year ended Dec 31, 2019 (FY19) on a strong note, with a net profit of RM20.27 million for the fourth quarter, from RM7.61 million in the previous year’s corresponding quarter, on improved margin in its engineering and manufacturing sector.

Revenue for the quarter rose 9.5% to RM156.03 million from RM142.54 million amid higher revenue recognition from the civil construction and steel pipe manufacturing divisions.

For the full FY19, the group’s net profit jumped almost three times to RM48.31 million from RM17.64 million in FY18, as revenue grew to RM559.03 million from RM412.48 million.

The company proposed a first and final dividend of six sen per share for FY19.