Hot Stock Comintel hits all-time high of 45.5 sen after reporting spectacular 3Q results

by **Cals** Fri 18 Dec 2015, 20:35

Hot Stock

[size=28]Comintel hits all-time high of 45.5 sen after reporting spectacular 3Q results

By Ahmad Naqib Idris / theedgemarkets.com | December 18, 2015 : 11:54 AM MYT

KUALA LUMPUR (Dec 18): Electric components manufacturer Comintel Corp Bhd ([You must be registered and logged in to see this image.] Valuation: 1.50, Fundamental: 0.55) saw its share price trade at an all-time high of 45.5 sen today, after the company reported spectacular results for its third quarter ended Oct 31, 2015 (3QFY16).

In a filing yesterday, Comintel said its net profit soared to RM4.86 million or 3.47 sen per share in 3QFY16 from RM871,000 or 0.62 sen per share a year earlier, on higher profit margins from its manufacturing sector and the strengthening of the US dollar.

Its revenue for the quarter rose 31% to RM109.85 million from RM83.77 million in 3QFY15.

For the nine months to Oct 31 (9MFY16), net profit stood at RM7.6 million or 5.43 sen per share from a loss of RM1.97 million in the previous year, while revenue increased 19% to RM267.91 million from RM224.33 million in 9MFY15.

In line with the improved results, Comintel's share price jumped as much as 8.5 sen or 23% to touch an all-time high of 45.5 sen, and was among the most actively traded stocks on the bourse.

At 11.37am, the counter gained 8 sen or 22% to 45 sen, with some 21.3 million shares exchanged.

Year to date, the counter has gained more than 130%, outperforming the FBM KLCI's decline of approximately 6% during the same period.

Going forward, the group expects the demand for its commercial products and manufacturing to drive its performance ahead, while staying cautious over the remainder of its current financial year.

It added that its renewable energy sector will only contribute to its earnings after the second half of calendar year 2016, as its two-megawatt renewable energy plant faced technical difficulties.

(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]