Hot Stock Frontken dips 11.43% on weaker 2Q results

by **Cals** Thu 27 Aug 2015, 00:29

Hot Stock
Frontken dips 11.43% on weaker 2Q results

KUALA LUMPUR (Aug 26): Actively traded Frontken Corp Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) dipped as much as 11.4% or 2 sen to 15.5 sen today after announcing a weaker set of quarterly results in its second quarter ended June 30 (2QFY15), which saw the company plunging into the red.
At 4pm, Frontken (fundamental: 2.2; valuation: 1.7) pared losses to trade at 16 sen, still down 8.6%, with 65.6 million shares done. It is the second most active counter across the bourse today.
The mechanical engineering service provider recorded a net loss of RM723,000 for its 2QFY15, compared to a net profit of RM1.78 million a year ago, due to higher expenses and lower project revenue from the ATB project in the current quarter.
Revenue also declined 8.75% to RM66.64 million, against RM73.04 million last year, mainly attributable to the lower revenue recognition from the ATB project as the same is at its completion stage.
Despite that, the group’s revenue for the six months ended June 30 rose 18.7% compared to the preceding year, due to better business performance from its subsidiaries in Taiwan, Philippines and Malaysia.
(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.)