Stocks with momentum: IQ Group resumes upward trend

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Little known IQ Group Holdings Bhd has been a star performer with its share price jumping more than four folds in the past 12 months, hitting historical high of RM2.01 in September.

The stock retreated to a low of RM1.54 in the recent selldown last month. Nonetheless, it rebounded and closed at RM1.83 today.

IQ is involved in the manufacture of security and convenience products, for instance, motion sensors, wireless radio and door entry products.

In its first quarter financial year ended June 30 (1QFY15), IQ Group posted a RM7.46 million net profit , an almost 400% increase year-on-year (Y-o-Y) from RM1.52 million in preceding corresponding quarter; while its revenue, leaped 46.14% Y-o-Y to RM56.74 million from RM38.82 million.

For the financial year ended Mar 31, 2014 (FY14), IQ Group posted a net profit of RM10.96 million, as compared with RM624,574 in FY13.

The sharp rise in the company’s profits was partly due to changes in inventories of finished good and work-in-progress that resulted in gains of RM6 million besides a forex gain of RM1 million.

QL is one of the counters picked by TheEdge Research for Stock with Momentum this afternoon. The others chosen were Sunway Bhd and HIL Industries Bhd.

As for mould maker HIL Industries Bhd, its share price has almost doubled from 40 sen a year ago, to a level above 75 sen today.

Sunway Bhd retreated to as low as RM3.35 today, 12 sen or 3.46% lower to its open price of RM3.47.

The counter has been in a rising trend since beginning of the year, with a price of RM2.72 in the first market day of 2014, and it has to-date appreciated about 23%.

Earnings wise, the property developer posted a RM182.5 million net profit in second quarter financial year ended Jun 30, 2014 (2QFY14), a 7.15% increase year-on-year (Y-o-Y) from RM170.3 million in preceding corresponding quarter; while its revenue, climbed 7.7% Y-o-Y to RM1.2 billion from RM1.12 billion.

Notably, the property developer is also mulling a public listing of its indirect wholly-owned construction unit, Sunway Construction Sdn Bhd, on Bursa Malaysia by second quarter next year.