This article first appeared in The Edge Financial Daily on June 30, 2017

KYM Holdings Bhd (-ve)
SHARES in KYM Holdings Bhd (fundamental: 0.65/3, valuation: 0.3/3) triggered our momentum algorithm yesterday for the third time this month and the fourth time this year. The stock closed up 4.48% or three sen at 70 sen yesterday, after 1.86 million shares were traded, compared with their 200-day average volume of about 247,890 shares.

KYM returned to profitability in the first financial quarter ended April 30, 2017 with a net profit of RM1.19 million versus a net loss of RM2.08 million. Revenue grew 7.7% to RM27.06 million from RM25.13 million.

On outlook, KYM said manufacturing will continue to be its core business and focus of the group. It maintains a cautiously positive outlook as it said it will be operating in a more challenging environment due to the volatility of the ringgit against the euro and the US dollar as well as global economic uncertainty, which could compress the profit margin for the remaining quarters of the current financial year.

At the current share price, KYM is trading at 1.08 times its book value.