Mega First Corp Bhd (+ve)

TRADING of shares in Mega First Corp Bhd (fundamental: 1.05/3, valuation: 0.8/3) triggered our momentum algorithm yesterday for the fourth time this year.

The counter closed two sen or 0.48% higher at RM4.18 yesterday, with a market capitalisation of RM1.78 billion. It saw 2.53 million shares traded, exceeding its 200-day average trading volume of 254,157.5 shares.

For the second quarter ended June 30, 2019 (2QFY19), the group saw its net profit decline 21.9% to RM22.21 million, from RM28.44 million a year ago. Quarterly revenue also dipped 27.4% year-on-year (y-o-y) to RM159.05 million. The group attributed the lower revenue to a lower recognition from its construction segment, while its net profit was also weighed down by the absence of the RM1.4 million disposal gain on property, plant and equipment in 2QFY18 and a lower foreign exchange gain.

For the cumulative six months ended June 30, 2019, net profit declined 6.79% to RM55.87 million, from RM59.94 million a year ago. Half-year revenue fell 12.26% y-o-y to RM380.89 million.