This article first appeared in The Edge Financial Daily, on December 21, 2015.
Comintel Corporation Bhd (-ve)
SHARES of Comintel (Fundamental: 0.55/3, Valuation: 1.5/3) surged a staggering 73% in active trade to close at a one-year high of 64 sen on Friday. This came after the company announced a strong set of quarterly results.
For 3QFYJan2016, revenue rose 31.1% y-y to RM109.9 million while net profit jumped an outsized 458% to RM4.9 million. The good performance was due to the shipment of higher margin products by the manufacturing division and the strengthening US dollar.
Comintel mainly manufactures and assembles electronic components. The company also provides communication and system integration as well as electronic systems testing and repair for the defense industry.
Additionally, the company ventured into the renewable energy business after signing a 16-year power purchase agreement with Tenaga Nasional Berhad in 2013. However, contributions are only expected to begin in 2H2016. This is because the company’s 2MW renewable green energy plant has yet to be commissioned after encountering unforeseen technical issues.