N2N Connect 2Q net profit jumps 76.5%

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KUALA LUMPUR (Aug 20): N2N Connect Bhd recorded a net profit of RM2.86 million or 0.65 sen a share for the second quarter ended June 30, 2015 (2QFY15), a 76.5% jump from RM1.62 million 0.52 sen a share a year ago, attributable to dividend income and reduction in the finance costs.

In a filing with Bursa Malaysia, the electronic and mobile commerce solutions provider said revenue for the quarter inched 9.7% higher to RM9.84 million from RM8.97 million in 2QFY14, due to one-time implementation charges for lease line installation, as well as increase of monthly fixed charge subscription of the online stock trading product.

For the six-month period (6MFY15), net profit increased 60.3% to RM5.08 million or 1.15 sen a share from RM3.17 million or 1.01 sen a share, due to the increase in the one-time implementation revenue and dividend income.

Revenue for the period also came in 15.6% higher at RM19.14 million compared with RM16.56 million in 6MFY14.

The group expects the market to be challenging for the remaining FY15, but will continue to attract new businesses from other equities and derivatives solution users to adopt its new products and services.

“N2N launched the flagship product for financial institutions worldwide in late May 2015, which is expected to contribute to revenue by 4QFY15. The group is also actively pursuing a few merger and acquisition targets that will be complementary to the group’s business activities,” its filing with Bursa said.

Listed on Bursa’s ACE Market, N2N Connect’s (fundamental: 1.25; valuation: 0.7) shares were last traded at 75 sen yesterday (Aug 19).

(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.)