Stock With Momentum: Menang Corp

This article first appeared in The Edge Financial Daily, on May 12, 2017.
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Menang Corp (M) Bhd (-ve)

SHARES in Menang Corp (M) Bhd (fundamental: 0.8/3, valuation: 2.1/3) triggered our momentum algorithm for the second time this year. The counter closed 4.5 sen or 4.92% higher at 96 sen yesterday, with some 6.65 million shares traded. It only saw 550,151 shares in its 200-day average volume.

Menang is principally involved in construction activities, including maintenance of facilities and infrastructure, as well as property development.

In a filing with Bursa Malaysia on April 14, Menang proposed to undertake a bonus issue of up to 320.53 million new shares on the basis of four bonus shares for every five existing shares in Menang on an entitlement date to be determined later.

Menang’s net profit grew 69.86% to RM8.51 million in the second financial quarter ended Dec 31, 2016 from RM5.01 million a year ago. Revenue, however, fell 38.6% to RM30.16 million from RM49.12 million.

The stock currently trades at a trailing 12-month price-earnings ratio of 7.58 times.