Weida (M) Bhd (-ve)

SHARES in Weida (M) Bhd (fundamental: 2.1/3, valuation: 2/3) closed up five sen or 3% at RM1.70 yesterday, after 664,600 shares were done, compared with its 200-day average volume of 62,999 shares. This is the first time this year the stock has triggered our momentum algorithm.

Weida is involved in the manufacturing of polyethylene-based building materials, environmental engineering services, construction of telecommunication infrastructure, environmental and building works, and property development.

In the first half of its financial year ended Sept 30, 2016 (1HFY17), Weida reported a 17.8% increase in net profit to RM15.71 million, from RM13.34 million in 1HFY16, due to better margins across its works and property development segments. Revenue for 1HFY17, however, came in 11.6% lower at RM179.52million, from RM203.13 million a year ago, on lower revenue from its manufacturing segment. At its current share price, Weida is trading at 0.5 times its book value.