This article first appeared in The Edge Financial Daily on August 20, 2019
Salutica Bhd (+ve)
TRADING of shares in Salutica Bhd (fundamental: 1.2/3, valuation: 1.2/3) triggered our momentum algorithm yesterday for the fourth time this year.
The stock closed three sen or 6.25% higher at 51 sen, with 5.27 million shares done, compared with the average 926,096 shares recorded in the past 200 days.
For the third quarter ended March 31, 2019 (3QFY19), the group reported a wider net loss of RM3.07 million versus the RM116,000 it reported for the previous corresponding quarter as revenue fell 60% to RM19.38 million from RM48.04 million.
It also incurred higher cost for holding excess resources pending mass production approval — which it has since received — for the second-generation cordless headsets and low production volume of existing products.
For the cumulative first nine months of FY19, its net profit slumped 98% to RM263,000 from RM12.35 million a year ago as revenue declined 44% to RM122.96 million from RM219.39 million.