Compugates actively traded on exclusive sale, cutting agreement inked last Friday

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KUALA LUMPUR (Apr 27): Loss-making consumer electronics and agriculture outfit Compugates Holdings Bhd was the most actively traded stock on Bursa Malaysia this morning, with 44.41 million shares changing hands.

The stock rose as high as 20% or 1 sen at 6 sen during intra-morning trade, before paring its gain to settle at 5.5 sen at noon break.

This translates to a market capitalisation of RM106.7 million.

Year-to-date, Compugates shares has fallen 28.57% from 7 sen on Sept 29 last year.

Last Friday, Compugates (fundamental: 0.8; valuation: 0.9) announced that its unit Compugates Marketing Sdn Bhd had signed a standing agarwood sale and cutting agreement (SASC) with Westwood Marketing Sdn Bhd for RM43.9 million.

Compugates said Westwood Marketing will buy the standing agarwood trees in a one-year term, while Compugates Marketing will sell it only to Westwood Marketing during that period.

“The SASC Agreement is expected to contribute to the earnings of the company and the group for the financial year ending Dec 31, 2015 (FY15) onwards,” Compugates said in a filing with the local bourse last Friday.

Compugates saw its net loss in FY14 widen to RM30.69 million from RM1.51 million in FY13, on lower revenue which slipped 1.6% to RM129.14 million from RM131.26 million previously.

The group currently has a short-term borrowing of RM14.36 million and a total equity of RM153.6 million, translating to a gearing ratio of 0.09 times. As at Dec 31, 2014, its cash and equivalent stood at RM20.58 million.

Compugates is controlled by its managing director Goh Kheng Peow, with a total stake of 24.4%.

(Notes: 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.)