This article first appeared in The Edge Financial Daily on November 21, 2017
Hock Heng Stone Industries Bhd (-ve)
SHARES in Hock Heng Stone Industries Bhd (fundamental: 0.55/3, valuation: 1.70/3) triggered our momentum algorithm yesterday for the second time this month.
Hock Heng’s share price went up seven sen or 12.2% at 64.5 sen, after 6.207 million shares were traded versus the counter’s 200-day average volume of 34,338 shares. The group’s market capitalisation stood at RM53.17 million.
For the second quarter ended June 30, 2017 (3QFY17), Hock Heng’s net profit jumped more than five times to RM419,000, from RM77,000 it recorded in the same quarter last year, mainly driven by the increase in revenue.
The company’s quarterly revenue grew 7.2% to RM10.68 million from RM9.95 million in 3QFY16, mainly due to revenue from the property development segment amounting to RM2.99 million and the increase by RM0.54 million in the sales of goods segment. However the revenue was partially offset by a decrease in the construction segment by RM2.81 million.