This article first appeared in The Edge Financial Daily, on July 28, 2016.

Malayan Flour Mills Bhd (-ve)

SHARES in Malayan Flour Mills Bhd (MFM) (fundamental: 0.55/3, valuation: 1.4/3) triggered our momentum algorithm yesterday for the second time this month, as its share price rose 10 sen or 7.09% to RM1.51, after 2.7 million shares changed hands.

In comparison, its 200-day average volume is only 142,999 shares.

MFM is mainly involved in flour milling and trading of flour-related products. The group has also diversified into poultry operations, including feed mills, breeder farming and broiler farming.

For the first quarter ended March 31, 2016 (1QFY16), the group’s net profit more than tripled to RM17.63 million, from RM5.4 million a year ago, mainly due to higher margins in its flour and poultry integration segment.

The group’s revenue saw an increase of 19.92% to RM666.84 million in 1QFY16, from RM556.06 million, mainly attributable to higher sales recorded in the flour and trading in grains segment.

The counter has been on an upward trend since mid-May this year, rising more than 24%.

MFM, which has a market capitalisation of RM830.86 million, is currently trading at a trailing price-earnings ratio of 23.67 times. It has a trailing 12-month dividend yield of 2.81%.