Resintech Bhd (-ve)

SHARES in Resintech Bhd (fundamental: 0.85/3, valuation: 2/3) triggered our momentum algorithm yesterday for the third time this year.

Resintech is involved in the manufacturing and trading of various plastic pipes, water tanks and fittings used in water and natural gas distribution systems, marine and dredging, mining and slurry, as well as electrical and telecommunication conduits, sewer, cable protection and drainage applications.

The counter closed up four sen or 8.9% at 49 sen yesterday, after 7.5 million shares were exchanged, compared with its 200-day average of 393,941 shares.

Resintech’s net profit for the first financial quarter ended June 30, 2016 more than doubled to RM962,000 from RM407,000 a year ago on higher sales. Revenue was 7.9% higher at RM18.65 million.

At its current share price, Resintech is trading at 0.5 times its book value.