Stock With Momentum: Permaju Industries

Permaju Industries Bhd (-ve)
TRADING of shares in Permaju Industries Bhd (fundamental: 0.75/3, valuation: 0.3/3) triggered our momentum algorithm yesterday for the fourth time this year.

The counter settled unchanged at 92.5 sen, with 13.41 million shares done, about four times its 200-day average volume of 3.39 million shares. Year to date, the counter has risen 13.5% from 81.5 sen on Dec 31, 2019.

The Sabah-based company distributes motor vehicles under the Volkswagen and Ford franchises, and is also involved in property development and timber plantation.

Last September, it ventured into solar power generation by partnering Vsolar Group Bhd, an ACE Market-listed solar photovoltaic system company.

Under the partnership, a solar energy-generation facility with a capacity of up to 90mw will be built on 121.4ha of land belonging to Permaju in Setul, Negeri Sembilan. In return, Vsolar will procure or provide the engineering services and expertise to build and operate the facility.