New Hoong Fatt Holdings Bhd (-ve)
TRADING of shares in New Hoong Fatt Holdings Bhd (fundamental: 1.65/3, valuation: 2/3) triggered our proprietary momentum algorithm yesterday for the first time this year.
The stock gained two sen or 0.71% to close at RM2.85, valuing it at RM235.62 million. A total of 13,000 shares were traded, exceeding the counter’s 200-day average volume of 6,458 shares.
For its third quarter ended Sept 30, 2018 (3QFY18), New Hoong Fatt’s net profit ballooned 53% to RM4.48 million from RM 2.92 million. Quarterly revenue also grew by 8.23% to RM68.19 million from RM63 million in 3QFY17. It attributed the stronger quarterly results to the higher revenue achieved as well as lower foreign exchange loss for 3QFY18 compared with 3QFY17. However, the increase was partially offset by higher raw material prices, manufacturing costs and operating expenses in the quarter, the company said.
The auto part maker expected the growth in the automotive industry to remain relatively sluggish in the near term despite the high vehicle sales during the tax-free period.