This article first appeared in The Edge Financial Daily on March 29, 2019

Teck Guan Perdana Bhd (-ve)
TRADING of shares in Teck Guan Perdana Bhd (fundamental: 1.55/3, valuation: 1.1/3) triggered our momentum algorithm yesterday for the third time this year.

The stock closed 14 sen or 10.69% higher at RM1.45 yesterday, with 1.67 million shares done, compared with the average 19,022 shares recorded in the past 200 days.

In its fourth quarter ended Jan 31, 2019 (4QFY19), the palm oil and cocoa producer’s net profit more than doubled to RM5.1 million from RM2.39 million in the previous year, thanks to higher operating margins. Quarterly revenue rose 29% to RM98.53 million versus RM76.51 million a year ago on higher sales volume.

For FY19, net profit jumped 11 times to RM2.54 million against RM224,000 in the previous corresponding period, though revenue fell 22% to RM301.9 million from RM387.92 million a year ago.

Management said it is cautiously optimistic on prospects for the forthcoming year, on the back of expected volatility in the palm oil market.