Stock With Momentum: Teo Seng Capital

This article first appeared in The Edge Financial Daily, on January 14, 2019.
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Teo Seng Capital Bhd (+ve)
TRADING of shares in Teo Seng Capital Bhd (fundamental: 0.65/3, valuation: 0.8/3) triggered our proprietary momentum algorithm last Friday for the first time this year. The stock went up one sen or 0.99% to RM1.02, with a market capitalisation of RM305.72 million.

A total of 1.17 million shares changed hands, compared with its 200-day average trading volume of 118,792 shares.

The company is involved in the manufacturing of animal feeds and layer farming including manufacture of paper egg trays. It also does trading in animal feed additives, disinfectants and insecticides.

For the third quarter ended Sept 30, Teo Seng posted more than sixfold jump in net profit to RM7.02 million from RM1.13 million a year ago, on the back of improved selling prices of eggs and higher sales quantities, coupled with lower feed cost.

As at last Friday, Teo Seng was trading at 1.17 times its book value.