This article first appeared in The Edge Financial Daily on April 17, 2018

SKH Consortium Bhd (-ve)

SHARES in SKH Consortium Bhd (fundamental: 1.65/3; valuation: 0.9/3), which triggered our momentum algorithm yesterday for the eighth time this year, closed 5.26% or 0.5 sen lower at nine sen. The counter saw 54.88 million shares traded, versus its 200-day average of 10.28 million shares.

For the third quarter ended Dec 31, 2017, the group reported a net loss of RM3.39 million versus a net profit of RM836,000 in the previous corresponding year, mainly due to impairment losses on a trade receivable of approximately RM4.8 million in the construction division. Quarterly revenue rose 24% to RM43.69 million from RM35.24 million a year ago, thanks to an increase in revenue in the IT and ICT division, which was mainly derived from the group’s Do-It-Yourself products.

For the cumulative nine months ended Dec 31, 2017, SKH fell into the red with a net loss of RM2.98 million versus a net profit of RM1.44 million in the previous year. Revenue rose 10% to RM113.43 million from RM103.31 million a year ago.

SKH is currently trading at 0.79 times its net book value.