Stock With Momentum: MBM Resources Bhd

This article first appeared in The Edge Financial Daily, on January 11, 2019.
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MBM Resources Bhd (+ve)
TRADING of shares in MBM Resources Bhd (MBMR) (fundamental: 1.35/3, valuation: 1.2/3) triggered our proprietary momentum algorithm yesterday for the first time this year.

The counter closed up one sen or 0.42% at RM2.40, with a market capitalisation of RM938.13 million.

A total of 1.15 million shares changed hands versus its 200-day average trading volume of 175,736.5 shares.

The company distributes and retails major international vehicle brands of vehicles in Malaysia such as Daihatsu, Perodua, Mitsubishi, Volkswagen, Volvo, Hino, as well as manufactures automotive parts such as wheels, airbags, seat belts and steering wheels.

Thanks to the goods and services tax holiday in June to August 2018, MBMR posted a more than fivefold jump in net profit to RM38.1 million for its third quarter ended Sept 30, 2018, and indicated earnings could have been even better if not for a supply shortage.

However, revenue was only marginally higher at RM472.4 million, from RM466.8 million a year ago.