Stock With Momentum: Kumpulan Perangsang Selangor

This article first appeared in The Edge Financial Daily, on August 1, 2018.
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Kumpulan Perangsang Selangor Bhd (+ve)

TRADING of shares in Kumpulan Perangsang Selangor Bhd (KPS) (fundamental: 1.15/3, valuation: 2/3) triggered our momentum algorithm as its share price hit an intraday high of RM1.98 with about 2.74 million shares traded. In comparison, its 200-day average volume was only about 542,968.

KPS recently bagged pipework contracts worth RM20 million from Pengurusan Air Selangor Sdn Bhd to replace existing pipeworks in Hulu Langat and Kuala Lumpur.

In a filing with Bursa Malaysia on July 2, the group said its indirect 60%-owned unit Smartpipe Technology Sdn Bhd had accepted the letter of award from Air Selangor.

The key scope of the work as described in the contract includes supplying and installing mild steel pipes, ductile irone pipes and high-density polyethylene pipe fixtures.

At closing, the group’s share price was unchanged at RM1.94 yesterday, with a market capitalisation of RM1.04 billion.