UMA Comintel unaware of reason behind share price plunge

by **Cals** Wed 22 Jun 2016, 01:09

UMA

[size=28]Comintel unaware of reason behind share price plunge

By Chester Tay / theedgemarkets.com | June 21, 2016 : 11:07 PM MYT

KUALA LUMPUR (June 21): Comintel Corp Bhd, an electronic components manufacturer, told Bursa Malaysia that it is unaware of any factor behind the plunge of the company’s share price today.

Comintel had been served with an unusual market activity (UMA) query from the stock exchange today, after its share price tumbled 27 sen or 28.88% to close at 66.5 sen.

The counter, which has a market capitalisation of RM134.40 million, was the third largest loser in Bursa Securities, and the eighth most actively-traded counter, with 30.66 million shares done.

The counter had climbed to an eight-year high of 95 sen in less than three weeks since May 30.

It is worth noting that the group is bound to announce its first quarter financial results ended ended Apr 30, 2016 (1QFY17) by end of June.

This is not the first time that Comintel has seen a sudden surge in its share price.

In December last year, the counter jumped 73% to 64 sen, a day after the group released its third quarter ended Oct 31, 2015 (3QFY16) financial results.

Comintel announced a big leap on its net profit, which soared several folds to RM4.86 million, from barely RM871,000. Revenue for 3QFY16 also rose by 31.13% to RM109.85 million, from RM83.77 million a year ago.

The earnings growth momentum continued in 4QFY16. Comintel's net profit jumped by more than 10 times to RM6.3 million in 4QFY16, from RM628,000 in 4QFY15; while revenue grew by 28.29% to RM109.31 million, from RM85.21 million previously.

Cumulatively for the financial year ended Dec 31, 2016 (FY16), the group posted a net profit of RM13.89 million against a net loss of RM1.34 million in the previous year. Revenue grew almost 22% to RM377.22 million, from RM309.54 million in FY15.

Comintel attributed the profit jump to higher profit margin contributed by its manufacturing segment.
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