Stock With Momentum: Taliworks Corp

This article first appeared in The Edge Financial Daily, on June 25, 2018.
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Taliworks Corp Bhd (-ve)

SHARES in Taliworks Corp Bhd (fundamental: 0.85/3, valuation: 2/3) triggered our proprietary momentum algorithm for the first time this year. Taliworks shares closed eight sen or 9.58% higher at 91.5 sen last Friday, giving it a market capitalisation of RM1.1 billion. Some 2.98 million shares changed hands last Friday, exceeding the counter’s 200-day average volume of 422,671 shares. Taliworks was last traded at 1.06 times its book value.

Taliworks’ net profit rose 10.5% for the first quarter ended March 31, 2018 to RM7.59 million from RM6.87 million. Revenue grew 14.5% to RM81.72 million from RM71.35 million primarily through contributions from its water treatment, supply, and distribution business due to higher bulk sales rate.

Going forward, Taliworks said it expects its Sungai Selangor Water Treatment Works Phase I operation, a main contributor to its earnings, to continue running above its production capacity of 950 million litres per day due to higher demand for treated water in the Klang Valley.

In its construction segment, Taliworks has three ongoing projects and will continue to tender for more infrastructure projects to boost its order book.