Ingenuity Consolidated Bhd (+ve)

Ingenuity (Fundamental: 0.95/3, Valuation: 0.9/3) is a provider of business software solutions, system integration services, IT and telecommunication products distribution services. 

Upon the acquisition of VistaVision Resources Sdn Bhd, a distributor of IT and telecommunication products, Ingenuity’s revenue jumped to RM553.6 million in FYMarch2013 from RM63.9 million in FY2012. The stock has surged 25% to close at 7.5 sen yesterday, since the release of its 3QFY15 results on Feb 13, 2015, which saw a pre-tax profit of RM0.224 million. For 9MFY15, however, Ingenuity reported cumulative pre-tax losses of RM13.43 million. 

The company has proposed a private placement exercise of up to 10% of its issued shares. The placement has yet to be implemented after several extensions. Ingenuity has applied to Bursa Securities for a further one-month extension to 18 March 2014 to complete the exercise, which is expected to raise gross proceeds of up to RM8 million.

This article first appeared in The Edge Financial Daily, on February 26, 2015.