Xin Hwa Holdings Bhd (+ve)
TRADING of shares in Xin Hwa Holdings Bhd (fundamental: 0.6/3, valuation: 0.5/3) triggered our momentum algorithm last Friday for the first time this year.
The counter closed up half a sen or 0.63% at 80 sen, with a market capitalisation of RM172.8 million. A total of 660,700 shares changed hands compared with the stock’s 200-day average volume of 134,639.5 shares
Xin Hwa’s net profit declined by 32.5% to RM2.03 million for the second financial quarter ended Sept 30, 2018 (2QFY19) from RM3.01 million a year ago, mainly due to a gain on disposal of property of RM700,000 in 2QFY18. There was also an increase in staff salary of RM620,000 as a result of annual increment, as well as increased bank borrowing cost of RM490,000 during the quarter under review.
However, revenue rose 5.9% to RM29.56 million from RM27.9 million in 2QFY18, thanks to new contracts awarded for cargo transportation services.