Stock With Momentum: Pansar

This article first appeared in The Edge Financial Daily, on December 23, 2019.
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Pansar Bhd (-ve)

TRADING of shares in Pansar Bhd (fundamental: 1.7/3, valuation: 1.4/3) triggered our momentum algorithm last Friday for the 12th time this year. The stock rose one sen or 1.6% to 63.5 sen, with 9.35 million shares done compared with its 200-day average volume of 1.67 million shares.

For the second quarter ended Sept 30, 2019 (2QFY20), the group’s net profit jumped 2.8 times to RM3.6 million, from RM1.25 million for the previous year, as a result of better margins. However, revenue fell 10% year-on-year to RM88.15 million versus RM97.41 million. Consequently, its net profit for the cumulative six months rose 39% to RM5.04 million from RM3.63 million, despite revenue falling 13% to RM169.7 million compared with RM194.55 million.

“Growth for this quarter would likely be stable as customers begin winding down for the year end, but sustained improvements could be expected in the coming year,” it said.