mTouche Technology Bhd (+ve)

TRADING of shares in mTouche Technology Bhd (fundamental: 1.65/3, valuation: 0.9/3) triggered our momentum algorithm for the first time this year.

The counter closed unchanged at eight sen yesterday, for a market capitalisation of RM40.69 million. A total of 8.2 million shares were traded yesterday, higher than its 200-day average trading volume of 1.02 million shares.

For the fourth quarter ended June 30, 2019 (4QFY19), mTouche’s net profit jumped 80.8% year-on-year (y-o-y) to RM3.69 million against RM2.04 million on higher revenue. Its revenue soared 32 times to RM16.99 million from RM519,000 in 4QFY18 due to increase revenue from mTouche International Sdn Bhd. Despite the improved quarterly results, the group was still in the red with a net loss of RM21.60 million for the full year ended June 30, 2019 (FY19) compared to a net profit of RM1.39 million recorded in FY18. Revenue, however, increased 40.4% y-o-y to RM27.5 million from RM19.59 million last year.