Systech most active, jumps 20% on growth targets, new revenue stream

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KUALA LUMPUR (Nov 10): Systech Bhd, the most active stock, jumped as much as 20% on double-digit growth targets for revenue and profits in FY15 and FY16, to be bumped up by a new revenue stream.

Systech is an e-business solutions provider that designs, develops, customizes and implements proprietary software solutions to mostly multilevel marketing (MLM) companies.

At 10.29 am, Systech gained 4 sen or 17.8% to 26.5 sen. The most active counter saw trades of some 50.7 million shares. It earlier hit a high of 27 sen.

The Edge Financial Daily today highlighted the firm’s expectation to hit revenue of RM10 million mark by FY16, ending Mar 31, 2016.

For FY15, revenue and profit are expected to grow significantly, from FY14 of RM6.77 million and RM1.78 million respectively, said Systech’s CEO Raymond Tan.

Tan has planned to venture into providing new security solutions and intelligence big data analytics to prevent computer hacking.

He hopes the new segment would contribute up to one-third of revenue by FY16.

The daily also reported that Systech has attracted market interest of late, with the counter having surged 60.8% in a week to Friday’s close of 22.5 sen.

Today, the stock has broken past Kenanga Research’s technical resistance levels of 23 sen and 26.5 sen. The stock currently faces its last resistance level of 28 sen.