This article first appeared in The Edge Financial Daily on January 30, 2019
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 yesterday for the fourth time this year.
The stock price went up three sen or 3.68% to 84.5 sen, with a market capitalisation of RM182.52 million. Some 2.5 million shares changed hands compared with the stock’s 200-day average volume of 168,637 shares traded.
For the second financial quarter ended Sept 30, 2018 (2QFY19), the group’s net profit declined by 32.5% to RM2.03 million 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 salaries of RM620,000 as a result of annual increments, as well as increased bank borrowing cost of RM490,000 during the quarter under review.
However, quarterly revenue grew 5.9% to RM29.56 million from RM27.9 million in 2QFY18, thanks to new contracts awarded for cargo transportation services.