Stock With Momentum: Kumpulan Powernet

This article first appeared in The Edge Financial Daily, on January 10, 2020.
-A +A

Kumpulan Powernet Bhd (-ve)

TRADING of shares in textile manufacturer Kumpulan Powernet Bhd (KPower) (fundamental: 1.8/3, valuation: 0/3) triggered our momentum algorithm yesterday for the 18th time over the past 12 months.

A total of 2.94 million shares were traded compared with the counter’s 200-day average trading volume of 662,465 shares. The stock rose 11 sen or 7.24% to close at RM1.63 with a market capitalisation of RM124.12 million.

The group’s new largest shareholder with a 53.58% stake — Datuk Dr Mohd Abdul Karim Abdullah, who is also founder and group chief executive of another listed company Serba Dinamik Holdings Bhd — said the goal is for KPower’s order book to reach RM1 billion this financial year ending June 30, 2020.

KPower is looking to diversify its business portfolio and is targeting for an order book from the energy and utilities, as well as the infrastructure and logistics sectors.