Friday 29 Mar 2024
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KUALA LUMPUR (March 20): Goodway Integrated Industries Bhd shares rose as much as nine sen or 38% to 33 sen as institutional investors eyed the rubber-related compound manufacturer's growth outlook.

At 12:30pm, Goodway shares settled at 29.5 sen with some 36 million shares changing hands. The stock was the second most-actively traded counter on Bursa Malaysia. Goodway shares had gained 51% so far this year compared to the FBM KLCI's 3% rise.

SJ Securities Sdn Bhd senior remisier Goh Kay Chong told theedgemarkets.com that Goodway's share price rise could be due to rotational play by some small funds in town.

Citing Goodway's latest quarterly financial report, Goh said the group is confident of its growth. "This showed that the group is actively managing the company. The group is confident that its action plans will lead the group towards sustainable growth," he said.

Goodway said in its latest quarterly financial report that net profit stood at RM1.09 million in the quarter ended Dec 31, 2017 versus a net loss of RM42.04 million a year earlier. For the 12 months, Goodway posted a net profit of RM520,000 compared to a net loss of RM45.62 million a year earlier. The company said its latest reported net assets per share stood at 41 sen.

Goodway has changed its financial year end to June 30 from Dec 31. As such, the company said the current financial year comprises 18 months from Jan 1, 2017 to June 30, 2018.

"While the group's rubber compounding and retreading business continues to be challenging, the group is confident of its plans to move forward on several fronts. The compounding business is developing new products, growing new markets and growing share of customers in its major export markets. For its retreading business, the improvisation to increase the new tyre sales revenue is growing. In addition, the group is in the midst of growing an additional line of business namely the wholesale of new tyres and is currently exploring to introduce new technology into its business.

"For the property development project, the progressive billing is ongoing and the company continues to intensify its sales efforts. The project is nearing completion and the Certificate of Completion is expected to be obtained within the 1st quarter of 2018. The group is confident that its action plans will lead the group towards sustainable growth," Goodway said.

 

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