Nova Wellness Group Bhd (-ve)

TRADING of shares in Nova Wellness Group Bhd (fundamental: -/3, valuation: -/3) triggered our momentum algorithm last Friday for the second time this month. The stock closed one sen or 1.8% higher at 56.6 sen, valuing the group at RM179.53 million. The counter saw 1.53 million shares traded, versus its 200-day average trading volume of 306,558.5 shares.

For the fourth quarter ended June 30, 2019, the group’s net profit more than doubled to RM5.64 million, from RM2.41 million a year earlier. Quarterly revenue grew 19.4% to RM9.63 million, from RM8.06 million for the corresponding quarter last year. The increase in quarterly earnings was attributed to higher sales for its House Bran segment, under the ActivMax functional food category, and sales contributions from the clinical trial of Hepar-P.

Cumulative full-year net profit rose 31.83% to RM10.94 million, from RM8.3 million last year. Financial year 2019 revenue grew 17.37% to RM29.7 million, from RM25.3 million.