Stock With Momentum: Malayan Flour Mills

This article first appeared in The Edge Financial Daily, on March 11, 2019.
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Malayan Flour Mills Bhd (-ve)
Trading of shares in Malayan Flour Mills Bhd (MFM) (fundamental: 2/3, valuation: 0.4/3) triggered our momentum algorithm on Friday for the first time this year.

The counter, which saw 43.97 million shares traded compared to a 200-day average trading volume of 2.13 million shares, closed 3.5 sen or 5.15% higher at a year-to-date high of 71.5 sen per share. This gave the group a market value of RM678.31 million.

In its fourth quarter ended Dec 31, 2018, MFM’s net profit quadrupled to RM16.6 million from RM4 million in the previous year’s corresponding period. This was due to higher sales prices for flour and grains, higher production volume for poultry, and an improvement in live bird prices.

Revenue grew to RM669.54 million from RM591.21 million due to higher sales recorded in MFM’s flour and grain trading segment, as well as its poultry segment.