KUALA LUMPUR (Dec 1): Instacom Group Bhd rose as much as one sen or 3% after the telecommunication specialist and construction firm reported a third quarter net profit of RM6.74 million from losses a year earlier.

Yesterday, Instacom said it sees a net profit of RM6.74 million in the third quarter ended Sept 30, 2015 compared with a net loss of RM2.02 million.

Nine-month (9MFY15) net profit rose to RM6.21 million from RM4.19 million a year earlier.

Today, Instacom shares rose to their highest so far at 33 sen. At 10.43am, the fifth most-active stock on Bursa Malaysia pared gains at 32.5 sen for a market capitalisation of RM760.5 million.

CIMB Investment Bank Bhd analyst Marcus Chan said Instacom's 9MFY15 core net profit of RM6.2 million was in line with CIMB's forecast.

Chan said the figure accounted for 80% of CIMB's full-year forecast.

"We believe that Instacom has massive P/E re-rating potential, given its large valuation gap with its construction peers.

"We adjust downwards our EPS and target price (TP) to take into account the dilution of share base from the (share) placement," he wrote in a note today.

Chan said CIMB, which reduced its FY16 and FY17 EPS forecast for Instacom by 9%, had cut its TP for the stock to 67 sen from 72 sen.

(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.)