PUC Founder appreciates 16.67% on pre-GST buying spree

by **Cals** Wed 04 Mar 2015, 01:22

PUC Founder appreciates 16.67% on pre-GST buying spree

By Gho Chee Yuan / theedgemarkets.com | March 3, 2015 : 3:24 PM MYT

KUALA LUMPUR ([size=14]March 3): Shares of PUC Founder (MSC) Bhd gained as much as 16.67% or 2.5 sen in the morning trading session, as investors bought into information technology counters before the implementation of Goods and Services Tax (GST).

On the resumption of the afternoon trading session, the counter had retreated to 17 sen as at 2.56pm, still up 2 sen or 13.33% — with some 55.7 million shares having changed hands — giving it a market capitalisation of RM159.35 million.

With the trading volume, PUC Founder (fundamental: 2.25; valuation: 1.8) was the sixth most active counters across the bourse.

Its warrant also climbed 9.09% to trade at 12 sen as at 2.57pm.

PUC Founder’s principal activity is the marketing of fingerprint verification products. It is also an IT solutions provider of electronic publishing and management information system to the Chinese language publishing industry.

In comparison, IFCA MSC Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) was down 1 sen or 0.84% at RM1.18, after some 2.2 million shares having changed hands.

A dealer told theedgemarkets.com that investors were buying into technology counters, as the GST will come in force in next month.

"Investors think these counter may benefit from the implementation of GST by developing software or providing related services to the companies," he said.

Aside from that, he said PUC Founder's share price was deemed as moderate.

"As earnings per share (EPS) for FY13 and FY14, the reported EPS showed that the share price is moderate," he added.

PUC Founder’s net profit for the fourth quarter ended Dec 31, 2014 (4QFY14) ballooned to RM2.3 million, from a net loss of RM128,000 a year ago, giving it an EPS of 2.5 sen against a loss per share of 1.3 sen a year earlier. Revenue for the quarter had also jumped by 224.75% to RM16.01 million, from RM4.93 million in the last corresponding period.

For FY14, PUC Founder's net profit expanded by 714.05% to RM9.85 million or 9.9 sen a share, from RM1.21 million or 1.22 sen a share in FY13. Revenue strengthened to RM53.49 million — 153.15% higher compared to RM21.13 million registered a year earlier.

PUC Founder said the higher earnings number was due to consolidation of financial results of the enlarged group, after the completion of its acquisition of Red Media Asia Ltd (RMA) and its subsidiaries.

RMA, a wholly-owned subsidiary of Resource Holding Management Ltd (RHML), has launched a reverse takeover on PUC Founder in 2013 for RM90 million.

[size=12](Notes: 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.)[/size]
[/size]