Seremban Engineering Bhd (-ve)
SHARES in Seremban Engineering Bhd (fundamental: 0/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the first time since 2015.
The shares closed up five sen or 15.15% higher at 38 sen after 343,500 shares were traded compared with the counter’s 200-day average of 25,846 shares.
The group is principally engaged in the fabrication of process equipment and metal structures, and the provision of maintenance, repair and shutdown works.
In the first quarter ended Sept 30, 2016, it posted a net profit of RM1.06 million versus a loss of RM10.03 million in the corresponding quarter the previous year. The improvement was mainly due to profit contribution from both existing and new customers from their palm oil refinery, waste management and chemical industry.
Revenue, however, fell 30% to RM23.20 million from RM33.08 million.
The stock is currently trading at 1.15 times its net book value.