Stock With Momentum: Resintech Bhd

This article first appeared in The Edge Financial Daily, on June 13, 2017.
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Resintech Bhd (-ve)
SHARES in Resintech Bhd (fundamental: 1.4/3, valuation: 2/3), which triggered our proprietary momentum algorithm last Friday, rose 3.5 sen or 6.48% to close at 57.5 sen with 6.16 million shares traded versus the counter’s 200-day average volume of 399,105 shares.

The group manufactures a wide range of polyethylene, polypropylene, acrylonitrile butadiene styrene, uPVC pipes, tanks, and fittings. Resintech’s net profit grew 206% to RM6.2 million for the fourth financial quarter ended March 31, 2017 (4QFY17) compared with RM2.03 million a year earlier on higher sales, as revenue dropped 7.4% to RM20.29 million from RM21.9 million.

For the full FY17, its net profit jumped 108.6% to RM9.04 million from RM4.33 million in FY16 due to fair value gain on investment properties, unrealised foreign exchange gain and higher product demand. Annual revenue was higher at RM79.87 million against RM77.22.

The stock is currently trading at 0.61 times its book value based on its latest traded price.