This article first appeared in The Edge Financial Daily, on October 6, 2015.

MQ Technology Bhd (-ve)

MQTECH (Fundamental: 0.95/3, Valuation: 0.3/3) rose 13.0% to close at 13 sen yesterday on heavy volume. 

Last month, the company fixed the issue price for its private placement of 10% at 10 sen each. Proceeds from the issuance of up to approximately RM2.54 million would be used for working capital requirements. 

Principally involved in high precision mould making and manufacturing hard disk drive (HDD) components, MQTech is looking to diversify into non-HDD businesses. 

In February, it entered into a Heads of Agreement to form a 51:49 JV with Cash Support Sdn Bhd to develop a 10.7-acre land in Melaka into a theme park. The expiry date of the agreement was extended to October 27. 

For 1H2015, revenue grew 73.5% y-y to RM9.1 million due to increased sales from a major customer. Net loss narrowed to RM0.9 million from RM3.9 million a year ago, on higher sales and cost reduction measures.