MBM Resources Bhd (+ve)
TRADING of shares in MBM Resources Bhd (fundamental: 1.4/3, valuation: 2/3) triggered our momentum algorithm yesterday for the fourth time this year.
The counter closed up 27 sen or 9.12% at RM3.23, with 4.91 million shares traded, higher than its 200-day average volume of 389,393 shares.
The group distributes and retails major brands of vehicles in Malaysia including Daihatsu, Perodua, Mitsubishi, Volkswagen, Volvo, and Hino.
MBM Resources’ net profit for the first quarter ended March 31, 2019 came in 51.31% higher at RM49.66 million from RM32.82 million a year ago, helped by strong demand for Perodua vehicles, while revenue grew 14.9% to RM532.45 million from RM463.46 million.
Perodua, which registered record sales of 227,243 units last year, announced last week that it was expecting to surpass that this year, with a target of 235,000 units, 4,000 units or 1.73% more than its original target of 231,000.