Stock With Momentum: Tien Wah Press Holdings

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This article first appeared in The Edge Financial Daily, on January 11, 2016.


Tien Wah Press Holdings Bhd (+ve)

SHARES of Tien Wah (Fundamental: 1.8/3, Valuation: 2.6/3) climbed 11.11% to close at RM3.20. The trading volume of 1,127,800 was high relative to its’ last 200-days average volume of 57,366. The company last triggered our momentum algorithm on Nov 20, 2015 and had surged by 19.0% ever since.

Tien Wah is primarily engaged in the printing services for tobacco packaging and cigarette filters. Most of its revenue were derived from export markets with only 18.8% coming from the domestic market.

For 3QFY15, net profit jumped by 74.1% y-o-y to RM22.2 million, due to higher contribution from an associate and lower depreciation charge. Revenue, however, grew by only 1.3% to RM270.3 million, on increased sales from a major customer and the stronger USD.

The company is trading at trailing PE of 12.09.