Stock With Momentum: MBM Resources

This article first appeared in The Edge Financial Daily, on April 17, 2019.
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MBM Resources Bhd (-ve)

TRADING of shares in MBM Resources Bhd (fundamental: 1.6/3, valuation: 1.2/3) triggered our Stocks with Momentum algorithm yesterday for the third time this year.

The counter closed up four sen or 1.33% at RM3.04 yesterday with 2.56 million shares traded, higher than its 200-day average volume of 279,089 shares.

The group distributes and retails major international vehicle brands of vehicles in Malaysia. It also manufactures car parts such as wheels, airbags, seat belts, steering wheels, and noise, vibration and harshness products.

MBM Resources returned to the black with a net profit of RM60.08 million for the fourth quarter ended Dec 31, 2018 (4QFY18), compared to a net loss of RM181.63 million a year earlier due to lower impairment charges.

Quarterly revenue climbed 15.28% to RM498.98 million from RM432.83 million previously (4QFY17).

As at yesterday, its shares were trading at 0.75 times its net book value.