This article first appeared in The Edge Financial Daily, on October 29, 2015.

Triplc Bhd (-ve)

TRIPLC (Fundamental: 0.8/3, Valuation: 1.5/3) rose as much as 9.4% in early trading yesterday, following announcement of its 1QFYMay2016 results. However, the stock closed unchanged at RM1.59.

For 1QFY2016, revenue grew 40.7% y-y to RM8.2 million, boosted by RM4.8 million in construction revenue from the additional variation order revenue recognition from its UiTM Puncak Alam (UiTM) campus project. Net profit increased by a lower 2.0% to RM3.6 million, due to higher administrative expenses and finance cost.

Prior to FY2014, the construction segment accounted for the bulk of revenue. Subsequently, TRIplc derives its revenue mainly from the 23-year concession agreement, starting April 2010, involving the maintenance works for the facilities and infrastructure of UiTM Zone 1 Phase 2.

Last month, the company received a confirmation of acceptance from Worldwide Holdings Berhad for the proposed disposal of its 338.7-acre mixed development land in Serendah, Ulu Selangor for RM140.1 million. The land was carried at RM37.2 million in FY2015.