Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on March 4, 2020

Solid Automotive Bhd (-ve)

TRADING of shares in Solid Automotive Bhd (fundamental: 0.75/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the second time this year.

The stock closed 4.48% or 1.5 sen higher at 35 sen after 7.72 million shares were traded, over 13 times its 200-day average trading volume of 578,546 shares.

Solid Automotive’s net profit slumped over 84% to RM112,000 for the second quarter ended Oct 31, 2019, from RM715,000 a year ago, despite doubling in revenue to RM72.03 million from RM35.86 million, mainly due to higher operating expenses.

According to its income statement, operating expenses jumped to RM9.26 million from RM3.33 million. Meanwhile, the jump in revenue was due to the inclusion of contributions from its newly acquired subsidiaries, Borneo Technical Co (M) Sdn Bhd, Wim Soon Auto Suppliers Sdn Bhd, and Win Soon Auto Suppliers (JB) Sdn Bhd.

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