Stock With Momentum: Pesona Metro Holdings

This article first appeared in The Edge Financial Daily, on August 28, 2018.
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Pesona Metro Holdings Bhd (-ve)

TRADING of the shares in Pesona Metro Holdings Bhd (fundamental: 0.45/3; valuation: 1.4/3) triggered our momentum algorithm yesterday for the first time this year. The group saw 30.11 million shares traded, compared with its 200-day average of 1.81 million shares.

The construction company saw its net profit drop 41.1% to RM3.57 million for the second financial quarter ended June 30, 2018 (2QFY18), from RM6.06 million a year ago. Quarterly revenue fell 20.8% to RM143.35 million from RM180.98 million for 2QFY17.

The weak quarterly performance was mainly due to slower construction progress recognised from ongoing projects.

On Aug 1, Pesona Metro bagged a RM218.22 million contract from a wholly-owned subsidiary of Melati Ehsan Holdings Bhd to build an office tower on Jalan Conlay, Kuala Lumpur.

The stock closed up 0.5 sen or 1.61% at 31.5 sen yesterday, with a market capitalisation of RM218.91 million. Pesona Metro currently trades at 1.21 times its book value.