Hot Stock LFE jumps as high as 200% on strong earnings

Hot Stock LFE jumps as high as 200% on strong earnings
Business & Markets 2013
Written by Cynthia Blemin of theedgemalaysia.com
Thursday, 12 September 2013 12:52

KUALA LUMPUR (Sept 11): Shares of LFE Corp Bhd rose sharply by as high as 200% in active trades today following announcement of strong earnings from overseas projects.

At 12.28 pm, LFE surged 14.5 sen or 111.5% to 27.5 sen per share, on trades of some 24.7 million shares.

Yesterday, the company announced that it posted a net profit of RM25.35 million for its fourth quarter ended July 31 (4QFY13), as compared to RM27.6 million in losses in similar quarter the previous year.

Having traded in a range of between 4 sen and 6 sen for the year, prices started to climb from end of August.

Senior remisier Goh Kay Chong, when contacted, said the stock could be uplifted from its PN17 status due to stronger financials.

“Recently the focus has been on penny stocks and investors are confident that this company could get out of its PN17 status,” he added.

LFE returned to the black following the recognition of profits from work done for projects in Middle East countries and higher revenue achieved from overseas markets in the CONSTRUCTION [] sector.

For the fourth quarter, LFE’s revenue rose 157.5% to RM32.45 million, as compared to RM12.6 million recorded in the previous year.

LFE is an investment holding company that provides general and specialised electrical and mechanical engineering services, and maintenance works.