Reach Energy Bhd (+ve)
TRADING of shares in Reach Energy (fundamental: 0.80/3, valuation: 0.90/3) triggered our momentum algorithm last Thursday for the first time this year. The group saw 28,367,800 shares traded, compared with its 200-day average of 3,539,913.5.
For the second quarter ended June 30, 2018, the group’s revenue increased by 66.1% to RM67.67 million as compared with the revenue of RM 40.74 million in second quarter ended June 30, 2017.
The revenue increase was mainly attributed to the increase in production volume, higher world crude oil price and deferred revenue from the first quarter arising from congested oil export traffic in March 2018.
The company posted a net profit of RM4.58 million for the quarter compared to a net loss of RM21.25 million a year ago.
The stock fell three sen or 8.7% to close at 31.5 sen, with a market capitalisation of RM402.51 million.
Reach Energy was last traded at 0.43 times its book value.