JHM Consolidation Bhd (-ve)
JHM (Fundamental: 0.35/3, Valuation: 0.5/3) was first picked by our momentum algorithm on May 25 at 35 sen. The stock fell slightly to 34 sen the next day, before rebounding to a new high of 41 sen yesterday, up 20.6%. It was among the most actively traded gainers yesterday, with 16 million shares changing hands.
Last Friday, the company released markedly stronger 1Q2015 results. It returned to the black with a net profit of RM1.8 million, a reversal from a net loss of RM1.1 million in 2014. Revenue increased 50.9% y-o-y to RM25 million in 1Q2015 on higher demand for LED application and customisation products.
However, net gearing jumped to 40% at end-March 2015, from 10% in 2014. No dividend was paid since 2009.
Based in Penang, JHM manufactures and assembles High Brightness Light Emitting Diode (‘HB LED’), Direct Current (‘DC’) components, fine pitch connector pins and other electronic components and products.
JHM (0127) - Stock With Momentum: JHM Consolidation
http://www.theedgemarkets.com
