Stock With Momentum: Master-Pack Group

This article first appeared in The Edge Financial Daily, on June 26, 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 fifth time this year. The stock closed 17 sen or 16.67% higher at RM1.19 yesterday, with 3.56 million shares done, compared with its 200-day average trading volume of 316,337 shares. The group principally manufactures, sells and distributes corrugated fibreboard cartons and packaging products.

For the first quarter ended March 31, 2019 (1QFY19), its net profit more than doubled to RM3.1 million versus RM1.41 million previously. Quarterly revenue rose 40% to RM47.52 million annually compared with RM33.85 million. The better performance was attributed to a higher volume of deliveries to its customers. Master-Pack expects a higher FY19 revenue than the previous year’s, with its ongoing programmes to reduce cost and increase productivity and efficiency.