Tek Seng Holdings Bhd (-ve)
TRADING of shares in PVC products manufacturer Tek Seng Holdings Bhd (fundamental: 1.65/3, valuation: 0.9/3) triggered our momentum algorithm for the first time this year, after the counter saw 1.28 million shares traded, or 6.56 times its 200-day average of 194,972 shares.
Tek Seng shares gained two sen or 8% to close at 27 sen yesterday. The counter has risen by 25.58% over the past one month.
Back in May, Tek Seng posted a turnaround after four loss-making quarters, delivering RM476,000 net profit in the first quarter ended March 31, 2019 despite revenue shrinking 13.37% to RM44.07 million from RM50.87 million the year before.
The better bottom line came as a result of lower production overhead recorded by its discontinued solar segment, which offset higher production costs incurred by the PVC segment.