This article first appeared in The Edge Financial Daily, on April 7, 2016.

Malaysia Marine And Heavy Engineering Holdings Bhd (+ve)

SHARES of Malaysia Marine And Heavy Engineering Holdings Bhd (MHB) (fundamental:1.55 /3; valuation: 1.1/3) triggered our momentum algorithm for the first time yesterday, after rising 9.5% to RM1.15, before settling at RM1.12, still up 6.7%, after some 7.66 million shares were traded. 

MHB dipped into the red in its fourth quarter ended Dec 31, 2015 (4QFY15), with a net loss of RM27.13 million, compared to a net profit of RM16.48 million last year — although its revenue grew 41.86% to RM721.14 million — after recognising impairment losses for both goodwill and assets, totalling RM99.8 million.

For FY15, its net profit fell 66.2% to RM43.89 million from RM129.93 million,as revenue slipped 8.9% to RM2.46 billion from RM2.7 billion. The stock currently trades at a trailing 12-month P/E of 38.3 times and is at 0.67 times of its book value.