Stock With Momentum: NAIM Holdings

This article first appeared in The Edge Financial Daily, on November 21, 2019.
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NAIM Holdings Bhd (-ve)
NAIM Holdings Bhd (fundamental: 1/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the 10th time this year, as the trading volume of its shares rose to 20.62 million, 2.5 times its 200-day average of 8.03 million shares.

The counter gained six sen or 5.83% to close at its three-month high of RM1.09.

For the second quarter ended June 30, 2019 (2QFY19), Naim grew its net profit by 11.13% to RM10.18 million from RM9.16 million previously, thanks to higher contributions from its associates. Revenue grew 37% to RM159.18 million from RM116.2 million.

It recorded a net profit of RM11.88 million for the cumulative six months of FY19, compared to a net loss of RM6.93 million a year ago, on higher profit from operations and better results from oil and gas subsidiaries.

Six-month revenue rose 15.61% to RM300.82 million from RM260.19 million on higher contributions from its business segments.