Comintel Corporation Bhd has been seeing a great run recently.

The counter touched its year high of RM1.58 on Feb 28 having registered a low of 81 sen in July last year.

It appears that the counter will likely climb higher after experiencing a climb towards

RM1.60, followed by RM1.70.

Things started to look bright last year when the company found a white knight to get itself out of the rut.

The company triggered the PN17 criteria on March 28, 2019 after its shareholders' equity fell below RM24 million or less than 25% of its issued capital.

As part of its regularisation plan, Comintel roped in businessman Datuk Seri S Subramaniam Pillai, who will be injecting his railway infrastructure business into the company.

Subramaniam is the founder and executive director of Dhaya Maju Infrastructure (Asia) Sdn Bhd.

At that time, Comintel said it will raise RM12.83 million by placing 171.12 million shares, representing 55% of its enlarged share capital, at 7.5 sen per share to Subramaniam.

Dhaya Maju is a joint venture partner in the RM4.47 billion Klang Valley Double Track 2 (KVDT2) rehabilitation project.

Comintel will undertake subcontract works in respect of the upgrading of railway infrastructure and system at KVDT2, for a contract sum of not less than RM132.36 million.

This has uplifted the company from its PN17 classification in September last year after its regularised financials no longer meet PN17-related criteria.

Following the regularisation exercise, Comintel will cease its business relating to green waste management and conversion of waste-to-energy, and will focus on system integration and maintenance services as its core business.

It is certainly a bumper profit for Subramaniam now that the counter has gone up to RM1.58 as he bought the stake at 7.5 sen.

Even when the shares were trading at over 80 sen, many long-time shareholders took profit.

Not many of these long-time investors would have held on until today.

Fundamentally, Comintel is paving a stronger path having posted higher net profit of RM11.24 million in the third quarter ended Oct 31, 2023 from RM6.35 million a year ago.

This was on the back of higher revenue of RM122.03 million versus RM64.54 million.

The construction segment which is contributed entirely by its wholly-owned subsidiary, Binastra Builders Sdn Bhd, has posted a total revenue of RM120.9 million and profit before tax of RM15.5 million

This is versus a revenue of RM62.7 million and profit before tax of RM8.8 million in the corresponding quarter of the preceding financial year.

The increase in revenue was mainly due to commencement of new projects and improvement in progress of construction work activities during current quarter.

This segment is the main contributor to the group’s overall revenue and profitability and expected to continue to deliver positive results and improve its overall results moving forward.

With more big ticket projects coming onstream, it looks like Comintel will continue to blossom and generate more investors’ interest in the counter.