Redtone’s International Bhd (+ve)
REDTONE’S (Fundamental: 2.3/3, Valuation: 0.3/3) share prices have risen sharply for consecutive days since March 10, gaining a cumulative 18.1% to close at a year-high of 88 sen yesterday. This comes after the Sultan of Johor emerged as a major shareholder with a 20.13% stake. Berjaya Corp holds a 27.4% stake in the company.

REDtone provides data and broadband services to corporate and government sectors. 

Of late, the company has been partnering property developers, most recently IOI Properties Group, in Johor to provide high-speed broadband connectivity. It expects to further expansion its footprint in the state, which will boost the company’s recurring income base.

For the latest 2QFYMay2015, revenue for the company increased 47% y-o-y to RM44.8 million, bolstered by higher data project revenue. Excluding the one-off gain on disposal of Redtone Mobile amounting to RM5 million in the previous corresponding quarter, net profit in 2QFY15 quadrupled on a y-o-y basis.

This article first appeared in The Edge Financial Daily, on March 18, 2015.