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Solution Engineering Holding Bhd (+ve)

SOLUTION (Fundamental: 2.5/3, Valuation: 1.5/3) gained 3 sen or 10.0% to 33 sen with cumulative 78.2 million shares changing hands over the past three days. With this, the stock has recouped all of the losses suffered during a sharp selldown last April.

The company specialises in the design and development of teaching equipment for engineering education (SOLTEQ) such as chemical, mechanical, electrical and control engineering for higher learning institutions. Domestic sales accounted for 85.4% of revenue in 2014.

For 2014, revenue soared 183.8% to RM35.9 million while net profit jumped 409.9% to RM3.8 million, due to higher sales of SOLTEQ equipment. Its balance sheet is healthy with net cash of RM15.6 million, or 8 sen per share.

The stock is trading at a trailing 12-month P/E of 17.6 times and 2.31 times book value. Dividend was 1 sen per share in 2014, translating into a yield of 2.9%.

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This article first appeared in The Edge Financial Daily, on April 21, 2015.

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