Stock With Momentum: mTouche Technology Bhd

This article first appeared in The Edge Financial Daily, on September 11, 2019.
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mTouche Technology Bhd (-ve)
TRADING of shares in mTouche Technology Bhd (fundamental: 1.65/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the second time this year as well as this month. The last time the counter triggered our momentum algorithm was last Thursday.

The stock closed two sen or 23.53% higher at 10.5 sen, giving it a market capitalisation of RM53.4 million. Some 18.13 million shares were traded compared with the counter’s 200-day average trading volume of 1.04 million shares.

For the fourth financial quarter ended June 30, 2019 (4QFY19), the group’s net profit rose to RM3.69 million, from RM2.04 million a year ago. Quarterly revenue rose to RM16.99 million, from RM519,000 in 4QFY18.

The group, however, slipped into the red for FY19, posting a net loss of RM21.6 million compared to a net profit of RM1.39 million in FY18. This was despite revenue rising to RM27.5 million, from RM19.59 million in the previous year.