Stock With Momentum: Malayan United Industries

This article first appeared in The Edge Financial Daily, on August 17, 2018.
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Malayan United Industries Bhd (-ve)
TRADING of shares in Malayan United Industries (fundamental: 0.75/3, valuation: 0.30/3) triggered our momentum algorithm yesterday for the first time this year. The group saw 11,684,000 shares traded compared to its 200-day average of 7,167,350.

Malayan United Industries’ revenue was down a marginal 2.3% to RM92.95 million in its third quarter ended March 31, 2018 (3QFY18) from RM95.16 million a year ago.

Net loss shrank 68.9% to RM4.38 million in 3QFY18 from RM14.08 million a year ago.

Malayan United Industries is involved in the retail, hotel, property, food and financial services industries. The division has begun consolidation measures that include the closing down of non-performing stores, refurbishment of department stores, introducing new fashion designs as well as incorporating other retailing concepts.

The stock rose 0.5 sen or 2.56% to close at 20 sen, giving it a market capitalisation of RM586.51 million. Malayan United Industries was last traded at 1.08 times its book value.