SYF Resources Bhd (-ve)
TRADING of the shares in SYF Resources Bhd (fundamental: 0.85/3, valuation: 1.8/3) triggered our momentum algorithm yesterday for the first time this year. The company saw 2.24 million shares traded, exceeding the counter’s 200-day average of 544,733.5.
The stock closed 1.5 sen or 4.76% higher at 33 sen, giving it a market capitalisation of RM204.35 million.
SYF currently trades at 0.63 times its book value. The furniture player slipped into the red in the third quarter ended April 30, 2018, after it posted a net loss of RM10.31 million against a net profit of RM8.28 million a year ago, due to a shortage of raw materials, higher labour cost and provision for liquidated ascertained damages.
Quarterly revenue dropped 17.87% to RM57.86 million, from RM70.44 million previously, partly due to lower sales. SYF had warned that its results are unlikely to improve for the remainder of the financial year.