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 first time this month.
The company’s share price closed 5% or 1.5 sen lower at 28.5 sen. Some 24.15 million shares were traded compared to the counter’s 200-day average trading volume of 112,386 shares.
Solid Automotive’s net profit for the second quarter ended Oct 31, 2019 fell to RM112,000 from RM715,000 a year earlier, no thanks to higher operating expenses, though revenue doubled to RM72.03 million from RM35.86 million.
The revenue jump came after including the contributions of newly acquired subsidiaries, namely Borneo Technical Co (M) Sdn Bhd, Win Soon Auto Suppliers Sdn Bhd and Win Soon Auto Suppliers (JB) Sdn Bhd.
For the cumulative six months ended Oct 31, 2019, the group’s net profit rose 28% to RM1.09 million from RM851,000, while revenue more than doubled to RM137.08 million from RM65.36 million.
Solid Automotive is involved in the trading of automotive electrical parts and components. It is the sole distributor of automotive electrical parts under the Lucas brand.