This article first appeared in The Edge Financial Daily on June 7, 2017
Malayan Flour Mills Bhd (MFM) (-ve)
SHARES in Malayan Flour Mills Bhd (MFM) (fundamental: 0.8/3, valuation: 2/3) triggered our proprietary momentum algorithm yesterday, and closed 13 sen or 5.78% lower at RM2.38.
The stock saw some 4.83 million shares traded, exceeding its 200-day average volume of 665,561 shares.
MFM saw its net profit for the first quarter ended March 31, 2017 (1QFY17) grew 41.3% to RM24.91 million from RM17.63 million a year ago, due to improved profit margins in its flour and poultry businesses.
However, MFM’s quarterly revenue fell 9.4% to RM604.18 million, from RM666.84 million, attributed to lower sales volume recorded in the flour and grains trading segment.
At the current share price, MFM is trading at 1.57 times its book value.