SHARES in Opcom Holdings Bhd (fundamental: 1.8/3, valuation: 0.8/3) triggered our proprietary momentum algorithm for the third time this year.

Opcom closed two sen or 2.22% higher at 92 sen, giving it a market capitalisation of RM148.35 million. A total of 19.05 million shares changed hands, exceeding its 200-day average volume of 2.562 million shares.

The group’s net profit soared for the fourth quarter ended March 31, 2018 to RM6.23 million from RM1.6 million a year ago. Revenue also jumped to RM31.44 million from RM22.416 million, mainly due to an increase in the supply of thixotropic gel and fibre optic cables. Earnings per share, as a result, rose to 3.87 sen from one sen.

Opcom is cautiously optimistic going forward as the group’s profit margin continues to be under pressure from increasing raw material cost, and limitations in passing increased cost to its customers in the short term.