Comintel up 4% after Edge FD reports on turnaround

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KUALA LUMPUR (May 5): Loss-making Comintel Corp Bhd rose as much as 4% after The Edge Financial Daily (Edge FD) reported today that the company could register profit in financial year ending Jan 31, 2017 (FY17).

Comintel's (fundamental: 0.35; valuation: 0.9) electricity-generation venture is expected to help the firm return to profitability, Edge FD reported.

Shares of Comintel rose as much as one sen to 23.5 sen. At 3.25pm, the stock pared gains at 22.5 sen with 139,100 shares done. At 22.5 sen, Comintel has a market capitalisation of RM31.5 million.

Comintel deputy chief executive officer Loh Hock Chiang told Edge FD the firm had obtained approval from the Sustainable Energy Development Authority to run a plant, which would produce electricity from solid waste.

Loh said Comintel had signed a power purchase agreement with Tenaga Nasional Bhd for a 16-year concession.

Comintel's net loss narrowed to RM1.34 million in financial year ended January 31, 2015 from a year earlier. Revenue fell to RM309.54 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)