Salutica Bhd (+ve)
TRADING in shares of Salutica Bhd (fundamental: 1.45/3, valuation: 1.4/3) triggered our momentum algorithm yesterday for the first time this year.
The technology solutions firm saw 2.91 million shares traded, equivalent to 0.75% of its share capital, exceeding the counter’s 200-day average of 689,618 shares. The stock rose 1.5 sen or 2.68% and closed at 57.5 sen, valuing it at RM223.1 million. Salutica was last traded at 1.27 times its book value.
Salutica slipped into the red in its third financial quarter ended March 31, 2018, posting a net loss of RM116,000 against a net profit of RM853,000 a year ago, as a result of increased expenses in the area of research and development activities, which were required for future product launches. Quarterly revenue, however, surged 52.35% to RM48.04 million, from RM31.53 million in the same period last year, thanks to the higher sales of its headset products.
On prospects, Salutica said the business outlook remains favourable.