PublicInvest Research

N2N Connect Berhad - Ceasing Coverage

Publish date: Fri, 26 May 2023, 01:02 PM
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An official blog in I3investor to publish research reports provided by PublicInvest Research team.

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9th Floor, Bangunan Public Bank
6, Jalan Sultan Sulaiman, 50000 Kuala Lumpur
T 603 2031 3011 | F 603 2272 3704 | Dealing Line 603 2260 6718

N2N reported a headline 1QFY23 net profit of RM2.9m (-26.4% YoY, -55.3%  QoQ), the weaker numbers coming as a result of lower revenue recorded during the quarter. Lower one-time implementation revenue and transaction-based revenue in the current quarter was the primary cause. Amid an increasingly uncertain global economic environment, securities market transactions are anticipated to be subdued in the months ahead. We had temporarily suspended coverage since 2018 (last published report dated 7  June, 2018), and are now formalizing the cessation on a permanent basis as we also redeploy internal resources to broaden sector coverage. Our last call and target price are Outperform and RM1.65.

  • 1QFY23. The Group recorded lower revenue of RM24.9m as compared to RM26.8m in the corresponding period last year, largely due to weaker one-time implementation revenue and transaction-based revenue in the current quarter. Net profit of RM2.9m for the current quarter is 26.4% lower than the RM4.0m recorded in the same quarter last year, mainly due to lower revenue, which was however offset by an increase in other operating income in the current quarter.

Source: PublicInvest Research - 26 May 2023

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