Keck Seng (M) Bhd (-ve)

Trading in shares of Keck Seng (M) Bhd (fundamental: 0.8/3; valuation: 1.4/3) triggered our momentum algorithm yesterday for the first time this year.

The stock closed five sen or 1.21% higher at RM4.20, after 84,900 shares were done, versus the counter’s 200-day average of 27,050 shares.

The group is an integrated palm oil producer involved in the cultivation, harvesting and milling of oil palm. It is also involved in share investment and property development.

In its second quarter ended June 30, 2018 (2QFY18), the group’s net profit soared 38 times to RM31.76 million from RM818,000 a year ago, though revenue fell 19% to RM232.17 million from RM286.6 million on lower selling prices and quantity of refined oil sold.

But its net profit in the first half of FY18 was still down 11% at RM10.35 million versus RM11.61 million a year ago, as revenue fell 20% to RM472.27 million from RM593.59 million.

Keck Seng is currently trading at 0.66 times its net book value.