Stock With Momentum: Master-Pack Group

This article first appeared in The Edge Financial Daily, on March 19, 2019.
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Master-Pack Group Bhd (-ve)
TRADING of shares in Master-Pack Group Bhd (fundamental: 1.4/3, valuation: 2/3) triggered our momentum algorithm yesterday for the second time this month.

The counter closed down 1.5 sen or 1.79% at 82.5 sen, with 3.95 million shares done, higher than its 200-day average volume of 142,709 shares.

The corrugated carton maker’s net profit increased 54.97% to RM1.81 million in the fourth quarter ended Dec 31, 2018, from RM1.17 million last year as the group managed to keep its fixed operating cost under control.

Quarterly revenue rose 25.14% to RM41.81 million, from RM33.41 million a year ago.

For the full year ended Dec 31, 2018, its net profit climbed 45.88% to RM5.76 million, versus RM3.95 million in the previous year, as revenue grew 25.55% to RM145.59 million against RM115.96 million.

At the current share price, Master-Pack is trading at 0.49 times its book value.