This article first appeared in The Edge Financial Daily, on June 21, 2016.

Thong Guan Industries Bhd (+ve)

SHARES in Thong Guan Industries Bhd (fundamental: 2.8/3, valuation: 1.4/3) triggered our momentum algorithm yesterday for the fourth time this year, following trades of 1.64 million shares. The stock gained 12 sen or 0.12% to close at RM4.02 yesterday.

The counter has been on the rise since late May, after the group announced stellar results for the first quarter of the year, gaining 93 sen or 30% since its closing of RM3.09 on May 25.

For the first quarter ended March 31, 2016, its  net profit almost tripled to RM13.07 million from RM4.63 million a year earlier, underpinned by increase in plastic products revenue and higher margin, the latter mainly from export sales.

Quarterly revenue came in 11.7% higher at RM179.67 million from RM160.79 million previously, on more plastic products sales, and higher average prices of raw materials, which translated into higher selling prices, its results filing had shown.

“It is pleasing to report that all operating divisions within the group have been profitable in the current quarter and are charting further growth,” it had said then.

It was also looking at acquiring stretch film and PVC food wrap lines, and said further growth on both volume and value was expected from plastic products and food and beverages this year.

The company did not pay out any dividend for its financial year ended Dec 31, 2015.