Eduspec plunges 7.14% despite narrower 1Q loss

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KUALA LUMPUR (Feb 27): Ace market-listed Eduspec Holdings Bhd saw its share price plunging 7.14% in the morning trades, despite posting a narrower net loss of RM3.38 million in its first financial quarter ended Dec 31 last year (1QFY15).

At 12:20 am, the counter tumbled 7.14% to 32.5 sen after falling to as low as 31.5 sen earlier. Eduspec saw some 14.42 million shares changing hands.

For comparison, the electronic learning provider had registered a net loss of RM3.79 million in 1QFY14.

“The stock had been moving up after they released the news on [going into] online education businesses,” a dealer told theedgemarkets.com.

Notably, Eduspec (fundamental score: 3; valuation score: 1.20) rose 63.04% to an all-time-high of 37.5 sen on Feb 23 this year from Dec 15, 2014. 

He said that investors would have acquired the shares assuming better results from Eduspec. “It might not be as good as expected because their net loss has just narrowed slightly.”

Yesterday, Eduspec posted a revenue of RM8.94 million, an increase of 84.33% on-year from RM4.85 million.

The higher revenue was on the back of higher contribution from its sale of goods business and fees from IT literacy courses, it said in an announcement with Bursa Malaysia.

However, it noted that the finance cost has increase compare to the previous year’s corresponding quarter. “The increase was mainly due to the finance cost of the bank overdraft and term loan utilized in the quarter.”

(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.)