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This article first appeared in The Edge Financial Daily on May 23, 2018

Tan Chong Motor Holdings Bhd (-ve)

SHARES in Tan Chong Motor Holdings Bhd (TCM) (fundamental: 0.35/3, valuation: 1.2/3), triggered our proprietary momentum algorithm for the first time this year.

The company’s share price soared to a one-year high of RM1.88, up five sen or 2.73%, with a market capitalisation of RM1.19 billion. A total of 467,900 shares were traded, about four times higher than its 200-day average volume of 129,322 shares. TCM reported a net profit of RM4.25 million for the first quarter ended March 31, 2018 (1QFY18), versus a net loss of RM35.32 million in the corresponding period last year, owing to reduced net debt.

The group’s revenue improved 4% to RM1.03 billion in 1QFY18, from RM995.65 million in 1QFY17. TCM said the automotive division recorded a higher revenue in the quarter under review, as more vehicles were sold during the period, backed by promotional campaigns.

At the current share price, TCM shares are trading at 0.43 times its book value.

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