Comintel jumps 63.63% after return to profitability in 1Q

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KUALA LUMPUR (June 26): Shares in Comintel Corporation Bhd surged as much as 63.63% in the morning trading session after the company returned to profitability in its financial quarter with RM1.86 million net profit.

At 11.09am, the stock narrowed down its gains to trade at 31 sen, still up nine sen or 40.9%, with some 9.63 million shares traded.

It was the ninth most actively traded counter across the bourse. The current price gives Comintel (fundamental: 0.35; valuation: 0.9) some RM30.8 million in market capitalisation.

Comintel is a electronic components manufacturer and assembler. It also provides total integrated Information Technology (IT) and Telecommunication solutions as well as system maintenance, repair and testing services for the defence industry.

According to its filing with Bursa Malaysia yesterday, Comintel said it posted a net profit of RM1.86 million in its first financial quarter ended April 30, 2015 (1QFY16) against a RM817,000 net loss a year ago.

Revenue for the quarter showed an improvement of 13.61% to RM83.33 million from RM73.35 million in last corresponding period.

The group attributed the better net income to the higher revenue and higher profit margin contributed by the manufacturing segment.

"The strengthening of US dollar has helped our products to be more competitive as all of our products are for export markets and sales are denominated in US dollar," it added.

(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.)