SHARES in AYS Ventures Bhd (fundamental: 1.1/3, valuation: 2.6/3) triggered our momentum algorithm last Friday for the first time this month. The stock closed up four sen or 6.9% at 62 sen, with 22.29 million shares traded higher versus its 200-day average of 2.02 million shares.
The group is a holding company principally involved in the trading and marketing of steel products.
It posted a net profit of RM6.39 million in the financial year ended March 31, 2017 (FY17) compared to a net loss of RM477,000 in FY16, mainly due to the recovery in selling prices of various steel products, lower net loss on foreign exchange and interest expenses.
Revenue, however, fell 13% to RM127.49 million from RM146.06 million in FY16, on lower sales volume due to a softening market demand.
AYS Ventures is currently trading at 1.0 times its net book value.