Hot stock RGB trades actively as 2Q net profit jumps 350%

by **Cals** Tue 26 Aug 2014, 23:15

Hot stock RGB trades actively as 2Q net profit jumps 350%

Business & Markets 2014

Written by Liew Jia Teng of theedgemalaysia.com

Tuesday, 26 August 2014 15:49

KUALA LUMPUR (Aug 26): Shares of RGB International Bhd were heavily traded among the most-active stocks today, after the electronic gaming and amusement machines manufacturer yesterday announced a net profit growth of close to 350% in the second quarter ended June 30, 2014 (2Q FY14), to RM7.53 million.

At 3.34pm, more than 118.704 million shares of RGB were traded, making it the third most-active counter on Bursa Malaysia. Its share price gained 2 sen or 15.4% to 15 sen.

In its filing to Bursa Malaysia yesterday, RGB said the strong profit growth in 2Q was attributed to stronger revenue and profit for its sales and marketing division, thanks to different product mix and higher value sold in the region.

Meanwhile, its technical support and management division also recorded higher revenue and profit, driven by improved performance in certain concessions.

RGB saw its quarterly revenue grow 80% to RM60.55 million, from RM33.61 million a year before.

For the six months period, RGB’s net profit increased 117% to RM9.25 million, from RM4.27 million. The group’s revenue grew 49% to RM96.88 million, from RM65.06 million.

RGB is primarily focused on sales & marketing and manufacturing of electronic gaming machines and equipments, as well as machines concession programme and technical support management. It currently operates in Malaysia, Cambodia, Philippines, Macau, Singapore, Laos and Vietnam.

Commenting on future prospect, RGB said its sales and marketing division expects to sell more than 1,200 machines in year 2014, in view of the anticipated opening of new integrated resorts and the expansion of existing integrated casinos in the region. Substantial orders of machines have been received, it added.

Besides, the technical support and management division also expects to add one concession in the second half of this year.

The group expects to achieve better results in this year.