This article first appeared in The Edge Financial Daily on October 3, 2019

Sern Khou Resources Bhd (-ve)

TRADING of shares in Sern Khou Resources Bhd (fundamental: 1.1/3, valuation: 0.8/3) yesterday triggered our momentum algorithm for the third time this year and the second time this month.

The counter closed 1.5 sen or 1.91% higher at 80 sen, valuing the company at RM192 million. Some 2.09 million shares were traded yesterday, versus its 200-day average trading volume of 294,090.5 shares.

For the fourth quarter ended June 30, 2019 (4QFY19), the group posted a net profit of RM2.18 million, from a net loss of RM144,000 for the same period last year. Revenue increased 49.59% to RM72.54 million, from RM48.49 million last year. The group attributed the improved 4QFY19 earnings to higher profit from its sawmill and kiln drying segments.

For the full year, net profit grew 27.27% year-on-year to RM11.56 million, from RM9.08 million before, while revenue jumped 37.07% to RM237.12 million, from RM173 million.