Dolomite Corporation Bhd ( Valuation: 1.70, Fundamental: 0.65) (+ve)
Dolomite (Fundamental: 0.65/3, Valuation: 1.7/3) triggered our momentum algorithm for the third consecutive trading day, rising a cumulative 11.7%. The stock closed unchanged at 43 sen yesterday on falling volume.
There appears no significant development recently save for earnings announcement on November 24. For 9M2015, revenue rose 9.1% y-y to RM68.4 million while pre-tax profit jumped an outsized 315.6% to RM13.3 million, mainly due to forex gain of RM16.6 million from the new thermal power plant in Shandong, China. Excluding this, the company would have made a pre-tax loss of RM3.3 million.
Dolomite mainly manufactures and sells quarry products, hot mixes and ready-mixed concrete. This segment accounted for 59.5% of its revenue for 9M2015 with the balance coming from property development and construction.
Dolomite’s newly commissioned coal-fired thermal power plant in China has started electricity production in July. Moving forward, the plant is expected to generate a new stream of recurring income.
DOLMITE (5835) - Stock With Momentum: Dolomite Corporation
http://www.theedgemarkets.com/my/article/stock-momentum-dolomite-corporation
