Stock With Momentum: Pestech International

This article first appeared in The Edge Financial Daily, on July 9, 2019.
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Pestech International Bhd (-ve)
TRADING of shares in Pestech International Bhd (fundamental: 0.9/3, valuation: 0.6/3), which triggered our momentum algorithm yesterday for the second time this month, closed up eight sen or 6.45% at RM1.32. About 5.95 million shares were done, versus the counter’s 200-day average trading volume of 450,474 shares.

The group is engaged in the provision of power system engineering and technical solutions for the design of substations, transmission lines and underground cables.

On June 17, Pestech announced it had secured a US$7.16 million (RM29.64 million) contract to supply mobile substations to Iraq’s electricity ministry. The contract — awarded to its wholly-owned unit Pestech Sdn Bhd — marked a significant milestone for the group, as it was its first time venturing into the Middle East.

As at yesterday, Pestech was trading at 1.94 times its net book value.