UMA IQ queried by Bursa after hitting limit-up

by **Cals** Tue 07 Jan 2014, 18:24

UMA IQ queried by Bursa after hitting limit-up

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Tuesday, 07 January 2014 17:07

KUALA LUMPUR (Jan 7): IQ Group Bhd, whose share price rose 30% and hit limit-up after lunch break, was slapped with a UMA (unusual market activity) query by the stock exchange.

The company received the UMA after the stock had risen 30 sen or 30% to RM1.31, on trades of some 1.6 million shares. It was the top gainer.

In the UMA, Bursa Malaysia told the company’s board of directors to explain whether there is any corporate development relating to the group’s business and affairs that has not been previously announced.

The stock exchange also wanted to know whether there is any rumour or report concerning the business and affairs of the group that may account for the trading activity.

The company’s share price had started to rise in morning trades after RHB Research, in its initiation report on IQ, recommended a “buy” call on the stock with a fair value of RM1.84 pegged to 12.5 times price earnings for FY15.

“We like the company for its earnings turnaround, new product launches in the pipeline, its ability to ride on the recovery of the global economy and solid balance sheet with total net cash of RM12.1 million as at the end of September 2013,” commented analyst Chaw Sook Ting of RHB Research.

For the second quarter ended 30th September 2013, the original equipment and design manufacturer of infrared detectors, motion sensor light controllers reported a net profit of RM6.76 million, against a loss of RM226,000 in the previous year corresponding period.