SMTrack Bhd (+ve)
SMTRACK (Fundamental: 1.95/3, Valuation: 0/3) — formerly known as Smartag Solutions — provides track and trace solutions, using Radio-Frequency Identification (RFID) technology, to ensure visibility and security of goods. Its tracking solutions are used by customers in logistics, manufacturing, container asset management, warehouse security and automated custom clearance, amongst others.
Between FYSep2011 and FY2013, revenue slumped from RM5.9 million to RM1.2 million, while pre-tax loss worsened from RM1.7 million to RM17.1 million.
For the 15 months ended December 2014, revenue and pre-tax loss totaled RM2.6 million and RM13.5 million, respectively. Losses were due, in part, to impairment of a jointly controlled entity amounting to RM5.0 million.
On February 12, 2015, SMTrack entered into an agreement with Sino Renewable Energy Corporation (China) to source, transport and track, up to 5,000 metric tons of palm acid oil per month. The stock closed 12% lower at 11 sen per share yesterday. It is now trading at 2.28 times book-value.
This article first appeared in The Edge Financial Daily, on May 7, 2015.