Stock With Momentum: KESM Industries

KESM Industries Bhd (-ve)
Shares in KESM Industries Bhd (fundamental: 2.35/3, valuation: 0.8/3) fell 6% or 72 sen from its one-year-high of RM11.90 to close at RM11.28 yesterday.

It triggered our momentum for the second time this year, with trading volume rising to 129,800 or three times its 200-day average of 40,535 shares.

For the first quarter ended Nov 30, 2019, KESM’s net profit grew 71.45% to RM4.53 million, from RM2.64 million a year earlier. This was despite revenue falling 11.24% to RM72.39 million, from RM81.56 million.

The uptick was thanks to a gain on

disposal of property, as well as lower expenses incurred due to lower materials used, lower employee benefits on a lower headcount, and lower depreciation of property and equipment.