Kronologi Asia Bhd (+ve)

SHARES in Kronologi Asia Bhd (fundamental: N/A, valuation: N/A) triggered our momentum algorithm for the first time this year as its stock price rose four sen or 17.02% to close at 27.5 sen yesterday, with 23.66 million shares traded. This compared to its 200-day average volume, which is at only 1.69 million shares.

Listed in December 2014, Kronologi provides comprehensive services to its customers for data assurance and protection through systematic backup, storage and recovery of enterprise data.

Kronologi has proposed to acquire the remaining 80% stake of its associate company, Quantum Storage (India) Pte Ltd, for RM26 million to be satisfied by the issue of 55.64 million new shares and cash, to expand its presence in India.

Kronologi posted a net profit of RM1.7 million for the second quarter ended June 30, 2016, compared to a net loss of RM868,000 a year earlier. Revenue soared 57.7% to RM14.78 million from RM9.37 million.

The stock currently trades at a trailing 12-month price-earnings ratio of 6.84 times and is at 1.83 times book value.