REXIT BHD (-ve)
SHARE price of thinly traded Rexit (Fundamental: 1.95/3, Valuation: 1.3/3) surged as much as 11.8% to a one-year high of 42.5 sen this week, after posting strong results for 3QFYJun2015. It gave up some gains to close at 42 sen yesterday.
For 9MFY2015, net profit soared 34.3% y-o-y to RM3.3 million on the back of a 44.1% growth in revenue to RM12.7 million, bolstered by higher software sales including subscription and transaction fees. It has a strong balance sheet with net cash of RM19.4 million, or approximately 25% of its market capitalisation.
Listed on the ACE market, Rexit provides web-based information technology solutions to the general insurance and financial services industry, in the form of front-end sales and marketing functions as well as back-end operations.
The stock is trading at a trailing 12-month P/E of 18.1 times and 2.76 times book. Dividends totalled 4 sen in FY2014, giving a net yield of 9.5%.
This article first appeared in The Edge Financial Daily, on May 22, 2015.