This article first appeared in The Edge Financial Daily, on July 21, 2016.

Pecca Group Bhd (-ve)

SHARES in Pecca Group Bhd (fundamental: N/A, valuation: N/A) triggered our momentum algorithm yesterday for the first time as its share price gained 2.29% to RM1.79 — its highest point since the company was listed in April — after 2.24 million shares were traded.

At its current share price, Pecca has a market capitalisation of RM336.52 million.

The share price rally came after Perusahaan Otomobil Kedua Sdn Bhd (Perodua) launched its first sedan this week.

Pecca in its prospectus said it is the sole supplier of leather car seat covers for Perodua.

It supplies car seat covers to Fuji Seats (M) Sdn Bhd and Perodua Sales Sdn Bhd, which collectively contributed 23.18% of its revenue for the financial year ended June 30, 2015.

For the third quarter ended March 31, 2016, it posted a net profit of RM3.08 million, on a revenue of RM27 million. Year to date, it has registered a net profit of RM11.66 million, on a revenue of RM96.72 million.