Stock With Momentum: Pantech Group Holdings

This article first appeared in The Edge Financial Daily, on March 5, 2019.
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Pantech Group Holdings Bhd (-ve)
TRADING of shares in Pantech Group Holdings Bhd (fundamental: 1/3, valuation: 2.2/3) triggered our stocks with momentum algorithm yesterday for the third time this year. The stock closed 1.5 sen or 2.65% higher at 58 sen yesterday, with 4.66 million shares done — much higher versus the counter's 200-day average trading volume of 919,086 shares.

Pantech saw a net profit of RM11.19 million in the third quarter ended Nov 30, 2018 (3QFY19), up 11.3% from RM10.05 million a year earlier, mainly due to lower operating expenses and its trading segment's improved performance. Quarterly revenue, however, fell 10.5% to RM140.16 million, from RM156.62 million in the same quarter last year.

For the nine months ended Nov 30, 2018 (9MFY19), Pantech's net profit was up 1.1% to RM36.18 million from RM35.77 million a year ago, as revenue inched up to RM466.6 million from RM465.22 million. Pantech is currently trading at 0.74 times its net book value.