Stock With Momentum: Rhone Ma Holdings

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This article first appeared in The Edge Financial Daily, on March 31, 2017.


Rhone Ma Holdings Bhd (-ve)

Shares in Rhone Ma Holdings Bhd (fundamental: N/A, valuation: N/A) triggered our momentum algorithm yesterday for the first time since its listing in December last year. A total of 6.65 million shares were traded compared with the counter’s 200-day average volume of 2.81 million shares.

The animal health solutions provider recorded a net loss of RM1.84 million in the fourth quarter ended Dec 31, 2016 due to a one-off listing expense of RM4.14 million. Revenue for the quarter came in at RM31.28 million.

For the full financial year 2016, the group recorded a revenue of RM119.2 million and a profit before tax of approximately RM13.22 million. Revenue from animal health products contributed RM92.11 million while revenue from food ingredients contributed RM26.49 million.

The group’s remaining revenue was derived from its provision of animal health services.

The stock closed up three sen or 3.09% at a record high of RM1 yesterday. It currently trades at 1.69 times its book value.