Stock With Momentum: Quality Concrete Holdings

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This article first appeared in The Edge Financial Daily, on October 19, 2015.

Quality Concrete Holdings Bhd (-ve)


THINLY traded Quality (Fundamental: 0.35/3, Valuation: 0.9/3) triggered our momentum algorithm for the first time last Friday, closing 2.7% higher at RM1.53. A total of 528,000 shares were traded last week, exceeding its 200-day average of only 7,251 shares.

Sarawak-based Quality, derived 66% of FYJan2015 revenue, from manufacturing of ready-mixed concrete and concrete products, polyethylene pipes, downstream timber products and sawmilling. It also has property development and contract works contributing 33% of revenue, with the balance from trading and quarry operations. 

Quality fell into the red in FY2014-2015, due to lack of new property projects, impairment on receivables and inventories written-off. 

There were no new corporate developments, apart from its 1HFY2015 results release on September 30. Losses increased to RM7.8 million, compared to RM3.5 million in 1HFY2014, attributed to higher operational costs from manufacturing division and property projects nearing completion stage.