Unimech Group Bhd (-ve)

TRADING of shares in Unimech Group Bhd (fundamental: 1/3, valuation: 2.6/3), a company principally involved in the import and distribution of engineering equipment and components, triggered our proprietary momentum algorithm yesterday for the second time this year.

A total of 1.3 million shares changed hands yesterday, exceeding its 200-day average of 146,035 shares, before the stock closed nine sen or 8.4% higher at RM1.16, bringing it a market capitalisation of RM163.45 million. Unimech saw its net profit for the financial year ended Dec 31, 2018 (FY18) rise over 60% to RM18.8 million from RM11.67 million previously.

Annual revenue grew 12.2% to RM276.92 million, from RM246.79 million for FY17, on increased demand in Indonesia, Thailand, and Vietnam.

Encouraged by an improvement in the valve, instrument and fittings industry in the second half of last year, Unimech sees it could perform better for FY19, barring any unforeseen circumstances.