Stock With Momentum: Revenue Group

This article first appeared in The Edge Financial Daily, on June 26, 2019.
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Revenue Group Bhd (-ve)
Trading of shares in Revenue Group Bhd (fundamental: N/A/3, valuation: N/A/3) triggered our momentum algorithm yesterday for the third time this year. The stock closed down one sen or 0.72% at RM1.38 yesterday, with 5.26 million shares done, versus its 200-day average trading volume of 3.13 million shares.

For the third quarter ended March 31, 2019, its net profit rose 40% year-on-year to RM2.54 million compared with RM1.81 million previously, on higher revenue, but offset by increased administrative expenses. Its revenue almost doubled to RM15.52 million from RM7.94 million previously on higher sales of electronic data capture terminals to the group’s customers.

In the cumulative nine months, its net profit rose 34% to RM6.85 million versus RM5.12 million in the previous year, as revenue jumped 88% to RM43.94 million from RM23.34 million a year ago. The group intends to expand its presence across the region and upgrade its revPAY platform to cater to a higher volume.