This article first appeared in The Edge Financial Daily on September 12, 2019
Magni-Tech Industries Bhd (+ve)
TRADING of shares in Magni-Tech Industries Bhd (fundamental: 2.8/3, valuation: 2.4/3) triggered our momentum algorithm yesterday for the fourth time this year.
The stock closed 38 sen or 7.04% higher at RM5.78. A total of 316,000 shares changed hands compared with the average 107,353 shares recorded in the past 200 days.
Magni-Tech achieved a 38.6% growth in net profit for the first financial quarter ended July 31, 2019 (1QFY20) to RM30.51 million compared with RM22.01 million a year ago. Quarterly revenue expanded 19.6% to RM327.33 million from RM273.74 million.
It attributed the higher revenue to its garment business, which accounted for 92.5% and 96.8% of the group’s revenue and operating profit respectively for 1QFY20.
The group also declared a single-tier interim dividend of seven sen per share, higher than the five sen declared for 1QFY19. The dividend is payable on Oct 25.