This article first appeared in The Edge Financial Daily on April 25, 2017

Wong Engineering Corp Bhd (-ve)
SHARES in Wong Engineering Corp Bhd (fundamental: 1.15/3, valuation: 0.3/3) triggered our momentum algorithm for the second time this year last Friday. The stock closed up eight sen or 10.81% at 82 sen, with 2.12 million shares traded, compared with its 200-day average volume of 199,046 shares.

In the first financial quarter ended Jan 31, 2017 (1QFY17), Wong Engineering posted a net loss of RM798,000 compared with a net profit of RM327,000 in 1QFY16, due to higher operating expenses. Revenue, meanwhile, climbed 9% from RM7.78 million to RM8.48 million.

On March 27, the precision metal manufacturing group re-elected Yong Loy Huat as its chief executive officer, following his retirement as managing director.

Yong, together with Tiong Nam Logistics Holdings Bhd’s major shareholders, TNTT Realty Sdn Bhd and Ong Yoong Nyock (who is also Yong’s brother-in-law), initiated a mandatory takeover offer for Wong Engineering shares in August 2016. The parties jointly held a 53.56% stake in the group at the time.