Hot Stock Sarawak Cable rises 5.8% after 1QFY15 net profit surges almost 9 times

by **Cals** Mon 01 Jun 2015, 22:48

Hot Stock
Sarawak Cable rises 5.8% after 1QFY15 net profit surges almost 9 times

KUALA LUMPUR (June 1): Sarawak Cable Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) rose as much as 5.84% or 8 sen to RM1.45, after its net profit for the first quarter ended Mar 31, 2015 (1QFY15) surged almost nine times.
At 12.30 pm, it pared down some gains to trade 3 sen or 2.19% higher at RM1.40, with 938,700 shares done, giving it a market capitalisation of RM443.87 million.
In contrast, the FBM KLCI was down down 11.59 points or 0.66% at 1,735.93.
Sarawak Cable (fundamental: 0.25; valuation: 1.4) saw its net profit surge to RM11.94 million in 1QFY15, compared to RM1.36 million in 1QFY14, on higher revenue from its transmission line, cables and conductors segments.
Its quarterly revenue jumped four times to RM343.61 million in 1QFY15, as compared to RM79.21 million in 1QFY14, according to its filing with Bursa Malaysia last Friday.
Sarawak Cable also declared an interim single tier dividend of one sen per share for the financial year ending Dec 31, 2015, with the date of entitlement and payment to be announced at a later date.
Meanwhile, Borneo Post online reported today that Sarawak Cable managing director Aaron Toh told reporters that he believed the company’s prospects will be better in the second half of the year, supported by improved progress billing from existing projects.
Sarawak Cable’s year-to-date order book and tender book stood at approximately RM2 billion and RM1 billion respectively, he added.
The company is eyeing more jobs from the Indonesian market in the form of power generation and supply of cables for transmission lines to enhance the growth of the company over the long term.
Toh also said, according to the report, that the company is targeting to achieve 100MW of power generating capacity (from mini hydro power plants mostly in Sumatra, Indonesia) within the next five years.
Toh said the company’s Indonesian unit PT Inpola Mitra Elektrindo (IME) is developing a mini hydro power plant with generation capacity of 10MW in north Sumatra, which is scheduled for completion this year and will start generating electricity next year.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)