This article first appeared in The Edge Financial Daily on October 2, 2017 - October 8, 2017

Yong Tai Bhd (-ve)

SHARES in Yong Tai Bhd (fundamental: 1.95/3, valuation: 0.9/3) triggered our momentum algorithm last Friday for the fourth time this year.

The counter closed up two sen or 1.24% at RM1.63, after 7.9 million shares were traded, exceeding its 200-day average volume of 1.33 million shares. The property developer is expecting its tourism business segment to contribute up to 40% of its revenue starting financial year ending June 30, 2019 (FY19), with the property development business segment taking up the rest. Currently, all its revenue comes from property development. Yong Tai has completed its disposal of the discontinued textile and garment businesses in the fourth quarter of FY17 (4QFY17).

Yong Tai’s net profit in 4QFY17 recorded a 45% jump to RM3.43 million from RM2.36 million a year ago, while revenue surged 24 times to RM67.24 million from RM2.78 million.

At the current share price, Yong Tai is trading at 1.47 times its book value.