This article first appeared in The Edge Financial Daily on July 18, 2019

Vsolar Group Bhd (+ve)

TRADING of shares in Vsolar Group Bhd (fundamental: 1.35/3, valuation: 0/3) triggered our momentum algorithm yesterday for the 20th time this year.

The counter closed up half a sen or 2.5% at 20.5 sen yesterday, with 29.67 million shares traded, over three times its 200-day average volume of 9.07 million shares.

The group reported a higher net loss of RM648,000 in the third quarter ended March 31, 2019, versus RM601,000 in the previous year, which it attributed to lower gross margins from its renewable energy segment. Revenue declined 55.35% to RM142,000 from RM318,000 previously on lower sales. For the cumulative nine months ended March 31, 2019, it recorded a wider net loss of RM1.22 million versus RM1.21 million a year ago, despite revenue growing 22.17% to RM1.28 million from RM1.05 million.

At the current share price, Vsolar is trading at 5.14 times its book value.