Stock With Momentum: Superlon Holdings Bhd

This article first appeared in The Edge Financial Daily, on January 10, 2019.
-A +A

Superlon Holdings Bhd (-ve)
TRADING of shares in Superlon Holdings Bhd (fundamental: 2.5/3, valuation: 1.2/3) triggered our stocks with momentum algorithm yesterday for the first time this year.

The counter closed up two sen or 1.63% at RM1.25 yesterday for a market capitalisation of RM198.45 million, with 159,500 shares traded, compared to its 200-day average volume of 305,064 shares.  It  produces nitrile butadiene rubber foam insulation materials (industrial and consumer) for domestic and export markets. It also manufactures parts for air conditioning and refrigeration appliances.

For the second financial quarter ended Oct 31, 2018, Superlon reported a 16.3% year-on-year increase in net profit to RM4.23 million from RM3.64 million mainly due to improvement in gross margin as a result of lower cost of material and higher exchange gain as compared to exchange loss incurred in the previous year.  As at yesterday, its shares were trading at 1.59 times its net book value.