This article first appeared in The Edge Financial Daily, on July 29, 2016.

Yinson Holdings Bhd (+ve)

SHARES in Yinson Holdings Bhd (fundamental: 1.3/3, valuation: 1.2/3), which provides offshore support services for the upstream oil and gas (O&G) sector, triggered our momentum algorithm yesterday for the second time this year.

The counter closed three sen or 1% higher at RM3.03, after 2.24 million shares were traded, over five times its 200 day-average volume of 402,488 shares.

The group recently announced the completion of the disposal of its non-O&G subsidiaries to Liannex Labuan Ltd, and proposed a special dividend of up to RM160 million.

The group’s net profit jumped 2.14 times or 114.16% year-on-year to RM22.38 million in the first quarter ended April 30, 2016, as its gross profit margin improved and fair value loss on derivatives declined.

Revenue, however, fell 17.62% to RM211.38 million, from RM256.6 million, largely because revenue from its discontinued operations for the period under review declined 39.1% due to lower sales volume.

At the current share price, Yinson is trading at 1.96 times its book value.