Hot Stock Instacom sees active trade as it eyes turnaround in FY16

by **Cals** Mon 16 Nov 2015, 21:17

Hot Stock

[size=28]Instacom sees active trade as it eyes turnaround in FY16

By Supriya Surendran / theedgemarkets.com | November 16, 2015 : 11:18 AM MYT

KUALA LUMPUR (Nov 16): Instacom Group Bhd ([You must be registered and logged in to see this image.] Valuation: 0.00, Fundamental: 1.25) saw some active trade on Bursa Malaysia this morning, as it was reported in The Edge Financial Daily that the group which is mainly involved in erecting telecommunication towers is curbing its losses for the financial year ending Dec 31, 2015 (FY15), and expects to turn around by FY16 with its construction venture.

At 11.02 am, Instacom shares were the third most actively-traded on Bursa Malaysia, trading up 0.5 sen or 2.44% at 21 sen, with 24.09 million shares traded.

Instacom warrant B was the second most active counter on the local bourse, with 24.35 million shares traded. Its warrants remain unchanged at 9 sen.

The group was quoted by The Edge Financial Daily in an article today as saying it is shifting from its reliance on the telecommunication industry to construction, as the latter industry offers more sustainable earnings and stronger revenue growth visibility.

Last Thursday (Nov 12), Instacom announced it had won RM230.29 million worth of construction works from China Railway Construction Corp Ltd, via the latter’s Malaysian unit, CRCC Malaysia Bhd. The projects are expected to be completed within three years.

Under the letter of awards (LoAs) from CRCC, Instacom’s subsidiary Vivocom Enterprise Sdn Bhd is obliged to provide construction works for the second package of the proposed mixed-commercial development 1Gateway in Klang, worth RM195.53 million; and the second package of a condominium project known as Pavilion Hilltop in Mont Kiara, Kuala Lumpur, worth RM34.76 million.

(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.)
[/size]