Heitech Padu Bhd (+ve)
SHARES for HeiTech (Fundamental: 0.35/3, Valuation: 0.9/3), which have been trending lower for the better part of the past 3 years, saw a sharp surge in investor interest last Thursday, gaining 23.1% to 72 sen. This comes after the company posted its 1Q2015 results on Wednesday, in which it turned in a profit for the second consecutive quarter after being in the red since 2013. The stock closed at 70.5 sen on Friday.
For 1Q2015, HeiTech’s revenue increased 12.5% y-y to RM103.3 million, and registered a profit of RM4.3 million, compared to a loss of RM5.1 million in 1Q2014. The increase was attributed to higher revenue from network services, data centre services and sales of software license.
The company is involved in the provision of systems integration, network related services, data centre management and IT-related services. Its clientele include the Road Transport Department and the Department of Immigration & Emigration in Sri Lanka.
This article first appeared in The Edge Financial Daily, on June 1, 2015.