Stock With Momentum: Comintel Corporation

by **Cals** Mon 06 Jul 2015, 00:10

Stock With Momentum: Comintel Corporation

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By Asia Analytica / The Edge Financial Daily | July 3, 2015 : 11:34 AM MYT

[size=14]omintel Corporation Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) (+ve)
Comintel (Fundamental: 0.55/3,Valuation: 0.9/3) saw its share price surge 45.5% since it announced 1QFYJan2016 earnings results. The stock closed unchanged at 32 sen yesterday.

The company turned around from a loss of RM817,000 in 1QFY2015 to a net profit of RM1.85 million in 1QFY2016, due mainly to sales of higher margin products from the manufacturing segment and the stronger USD. Its products are mainly for export and sales are denominated in USD.

Comintel manufactures electronic components, provides telecommunication and systems integration solutions as well as testing and repair maintenance for the defence industry.

It ventured into renewable energy business in 2013 after its 70%-owned subsidiary Comintel Green Technologies Sdn Bhd (CGT) signed a 16-year renewable energy power purchase agreement with Tenaga Nasional ([You must be registered and logged in to see this image.] Financial Dashboard). Last month, CGT has launched its 2MW biomass power plant in Rawang. It expects revenue of RM6.67 million per year based on feed-in tariff rate of RM0.4231 per kWh.

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This article first appeared in The Edge Financial Daily, on July 3, 2015.
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