Stock With Momentum: Magnum

This article first appeared in The Edge Financial Daily, on June 18, 2018.
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Magnum Bhd (+ve)

TRADING of the shares in gaming group Magnum Bhd (fundamental: 1.4/3, valuation: 2/3), which saw 2.38 million shares crossed last Thursday, triggered our momentum algorithm.

Magnum rose 11 sen or 4.93% to a one-year high of RM2.34, giving the group a market capitalisation of RM3.35 billion and making it the 15th largest gainer on Bursa Malaysia that day.

It is trading at 1.34 times its book value.

The group posted a 79.7% increase in net profit for its first quarter ended March 31, 2018 to RM54.94 million, from RM30.57 million a year ago, on the back of higher gaming revenue and a lower prize-payout ratio.

On June 1, Lum Fook Seng was promoted to chief financial officer of the group. Lum, 53, acts as the head of finance and administration for the group and has more than 26 years of experience in the gaming industry.