Stock With Momentum: Sinotop Holdings

This article first appeared in The Edge Financial Daily, on September 19, 2018.
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Sinotop Holdings Bhd
Trading of shares in Sinotop Holdings Bhd (fundamental: 1.2, valuation: 0.9) triggered our momentum algorithm yesterday for the second time this year. The stock closed one sen or 2.78% higher at 37 sen.

The stock saw 1.32 million shares traded, exceeding its 200-day average volume of 115,678 shares.

The China-based fabric maker’s net profit for the three months ended June 30, 2018 was RM4.07 million, on a revenue of RM31.91 million. Net profit for the cumulative 18-month ended June 30, 2018 came in at RM121,000 while revenue stood at RM217.49 million.

Sinotop changed its financial year-end to June 30 from Dec 31. Accordingly, there are no comparative figures.

However, it said it recorded improved results for both periods on improved operating efficiency and high recovery of receivables in the fabric production segment, and contributions from project management services and infrastructure construction.