This article first appeared in The Edge Financial Daily on November 22, 2019

Ta Ann Holdings Bhd (-ve)
SHARES in Ta Ann Holdings Bhd (fundamental: 1/3, valuation: 2/3) triggered our momentum algorithm for the first time this year after trading volume surged to 1.02 million or 12 times its 200-day average of 83,576 shares.

The counter rose 32 sen or 12.03% to close at its one-year high of RM2.98 yesterday, a day after posting a 23.08% year-on-year (y-o-y) net profit fall for the third quarter ended Sept 30, 2019 to RM24.78 million from RM32.21 million.

The reduced profit was due to the lower average selling prices of export logs, plywood products, fresh fruit bunches and crude palm oil — mitigated by better sales volume. Revenue fell by 3.06% y-o-y to RM267.92 million from RM276.39 million.

For the cumulative nine months of financial year 2019, Ta Ann’s net profit sank 27.66% y-o-y to RM37.99 million from RM52.52 million, while revenue retreated 9% y-o-y to RM662.85 million from RM728.34 million.