Stock With Momentum: WZ Satu

This article first appeared in The Edge Financial Daily, on October 16, 2019.
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WZ Satu Bhd (-ve)

TRADING of shares in WZ Satu Bhd (fundamental: 0.55/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the sixth time this year.

Its share price went up two sen or 7.41% higher at 29 sen, bringing it a market capitalisation of RM179.86 million. The counter saw some 16.27 million shares traded, nine times higher than its 200-day average trading volume of 1.79 million shares.

Last Thursday, the civil engineering and construction group said its subsidiary WZS Biogas Jerantut Sdn Bhd would supply green energy generated by a proposed biogas power plant in Jerantut, Pahang to Tenaga Nasional Bhd for 21 years, gaining an annual revenue of RM3 million to RM4 million.

The proposed plant, which is due to start operation in January 2022, is expected to generate up to 1MWh, equivalent to the usage of about 500 to 600 households per day.