Stocks With Momentum: Inix

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Inix Technologies Holdings Bhd (-ve)
ACE market-listed, Inix (Fundamental: 1.65/3, Valution: 0.3/3) is mainly involved in software development, system integrations and selling of e-books. Despite growing revenue between FYJuly2010 and FY2014, the company’s earnings were volatile. Inix eventually fell into the red with a net loss of RM1.39 million in FY2014, due to higher workforce expenses.

For 1HFY2015, Inix recorded a net profit of RM55,000, attributed to higher operating profit of RM247,000 from software development segment, as compared to a loss in the previous period.

On March 16, 2015, Inix proposed a rights issue exercise, which will raise gross proceeds of up to RM27.82 million. The company intends to utilise RM8 million of the proceeds for developing mobile game applications. Inix also plans to diversify its business into land reclamation services, by using RM7.2 million and RM5.5 million respectively, to acquire 30% interest in Galactic Yield Enterprises Ltd and purchase new vessels.

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This article first appeared in The Edge Financial Daily, on April 2, 2015.