KESM Industries Bhd (+ve)

SHARES in KESM Industries Bhd (Fundamental: 2.8/3, Valuation: 1.4/3) triggered our momentum algorithm for the second time this year. The counter closed 73 sen or 10.5% higher at RM7.68 yesterday, with some 1.04 million shares traded. In comparison, its 200-days average volume was only around 144,083. It was the top gainer on the local bourse yesterday.

Independent burn-in service provider KESM posted a net profit of RM7.57 million in the third quarter ended April 30, 2016, a jump of 4.4 times or 337.57% compared with RM1.73 million a year earlier, mainly due to higher sales from electronic manufacturing services and higher demand for all services. Revenue rose 12.46% to RM70.77 million from RM62.93 million. It has declared a special interim dividend of 4.5 sen per share, payable on Aug 18.

For the nine months of financial year 2016, KESM’s net profit surged 244.07% to RM22.64 million from RM6.58 million. Revenue grew 8.77% to RM211.21 million from RM194.18 million.