Stock With Momentum: SKP Resources

This article first appeared in The Edge Financial Daily, on July 19, 2017.
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SKP Resources Bhd (+ve)

SHARES in SKP Resources Bhd (fundamental: 2.1/3, valuation: 2.1/3), which triggered our momentum algorithm yesterday for the first time this year, closed two sen or 1.53% higher at RM1.33.

Some 10 million shares were traded, about five times the 200-day average volume of 2.15 million.

Its net profit for the fourth quarter ended March 31, 2017 (4QFY17) climbed 57% to RM33.13 million or 2.78 sen per share, from RM21.08 million or 1.89 sen per share last year, on higher revenue from existing key customers in FY17.

Quarterly revenue was up almost threefold to RM586.54 million, from RM196.29 million in FY16.

For FY17, net profit grew 28.2% to RM104.51 million or 8.93 sen per share, from RM81.55 million or 7.47 sen per share; revenue surged 91.4% to RM1.94 billion, from RM1.02 billion.

At the current share price, SKP Resources is trading at 3.5 times its book value.