This article first appeared in The Edge Financial Daily on February 3, 2020

LKL International Bhd (-ve)

LKL International Bhd (fundamental: 1.65/3, valuation: 0.3/3) made it to our Stocks with Momentum list last Friday for the fifth time this year.

The stock closed 13.33% or three sen lower at 19.5 sen, after 16.47 million shares were traded, almost 18 times its 200-day average trading volume of 924,127.5 shares.

For the second quarter ended Oct 31, 2019, the group’s net profit ballooned to RM433,000 from RM113,000 for the same quarter a year ago, following stronger revenue and better profit margins from its product mix. Quarterly revenue grew 12.6% to RM10.68 million from RM9.48 million, thanks to improved sales of medical peripherals and accessories.

For the six months ended Oct 31, 2019, the group’s net profit swelled to RM557,000 from RM141,000 a year ago, as revenue increased 16.1% to RM20.03 million from RM17.25 million.