This article first appeared in The Edge Financial Daily, on December 14, 2015.
Excel Force Msc Bhd (-ve)
SHARES of Excel Force (Fundamental: 1.95/3, Valuation: 1.1/3) gained 3.4% in active trade to close at 91 sen on Friday. The stock has risen 47.7% since it triggered our momentum algorithm for the first time in April.
Excel Force is primarily involved in providing information systems and services to banks and stock-broking companies in Malaysia, Thailand and Vietnam. Its customers include brokerage houses like Maybank Kim Eng, UOB Kay Hian and Kenanga Investment Bank Bhd.
In terms of revenue breakdown, 62.6% comes from volume-and-transaction-based outsourcing service charges while 30.3% comes from the sale of software applications products. Additionally, Excel Force provides maintenance services.
For 9M2015, revenue rose 18.8% y-y to RM18.9 million, thanks to higher software applications sales. Excluding a one-time gain of RM1.4 million on disposal of an office premise in 9M2014, core pre-tax profit increased 9.8% to RM7.5 million.
The stock currently has a net yield of 3.4%.