Stock With Momentum: Pos Malaysia

This article first appeared in The Edge Financial Daily, on June 18, 2018.
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Pos Malaysia Bhd (+ve)
TRADING of the shares in Pos Malaysia Bhd (fundamental: 1.4/3, valuation: 2/3), which triggered our momentum algorithm last Thursday, saw some 3.54 million shares crossed, about two times its 200-day average of 1.25 million shares.

Closing unchanged at RM3.90, the stock stayed at its three-month high with a market capitalisation of RM3.03 billion.

The group’s fourth quarter net profit for the three months ended March 31, 2018, jumped almost three times year-on-year to RM29.03 million from RM9.89 million, following higher revenue and improved cost management, and as the year-ago quarter’s taxation was higher.

Revenue in the quarter grew 2.8% to RM653.08 million versus RM635.55 million a year ago, driven by its acquired logistics business and strong growth in its courier segment.