OPCOM (0035) - Stocks With Momentum: Opcom
March 24, 2015 : 10:51 AM MYT
OPCOM Holdings Bhd (-ve)
FOLLOWING the redesignation of Tan Sri Mokhzani Mahathir as CEO during last Friday, OPCOM saw its shares surged 22.8%, closing at an all-time high of RM1.16 yesterday.
OPCOM (Fundamental: 2.2/3, Valuation: 1.5/3) is primarily involved in the manufacturing of fibre optic cable.
For FYMarch2014, net profit slumped 78.5% to RM2.79 million, due to intense competition from foreign suppliers. The company managed to double its net profit for 9MFY2015 to RM2.58 million, attributed to increased customer orders for cables and accessories.
OPCOM also stands to benefit from the roll-out of High Speed Broadband Phase Two (HSBB2) which was awarded to Telekom Malaysia Bhd in late February, for RM1.8 billion over a 10-year period.
As end-December 2014, the company has a net cash of RM48.3 million, equivalent to 30 sen per share or 25.9% of its current share price of RM1.16.
The stock is currently trading at trailing 12-month P/E of 36.07 times and 2.01 times book value.
This article first appeared in The Edge Financial Daily, on March 24, 2015.
http://www.theedgemarkets.com
March 24, 2015 : 10:51 AM MYT
OPCOM Holdings Bhd (-ve)
FOLLOWING the redesignation of Tan Sri Mokhzani Mahathir as CEO during last Friday, OPCOM saw its shares surged 22.8%, closing at an all-time high of RM1.16 yesterday.
OPCOM (Fundamental: 2.2/3, Valuation: 1.5/3) is primarily involved in the manufacturing of fibre optic cable.
For FYMarch2014, net profit slumped 78.5% to RM2.79 million, due to intense competition from foreign suppliers. The company managed to double its net profit for 9MFY2015 to RM2.58 million, attributed to increased customer orders for cables and accessories.
OPCOM also stands to benefit from the roll-out of High Speed Broadband Phase Two (HSBB2) which was awarded to Telekom Malaysia Bhd in late February, for RM1.8 billion over a 10-year period.
As end-December 2014, the company has a net cash of RM48.3 million, equivalent to 30 sen per share or 25.9% of its current share price of RM1.16.
The stock is currently trading at trailing 12-month P/E of 36.07 times and 2.01 times book value.
This article first appeared in The Edge Financial Daily, on March 24, 2015.
http://www.theedgemarkets.com
