The Daily Pulse of Bursa Malaysia

Censof hits 30-month high on heightened investors’ interest. Can it sustain?

Publish date: Thu, 13 Jun 2024, 08:23 AM
0 131
Daily Pulse is a blog that provides daily stock updates and insights on the Bursa Malaysia.

Follow us in telegram for more daily discussion

Censof Holdings Bhd has gained almost 20% in over two days to close at 37 sen on June 12.

Strong buying interest in the counter lifted its share price to touch its 30-month high of 40 sen before closing at 37 sen.

It appears that the counter is poised for further upside with follow-through buying to boost prices towards the resistance levels of 40.5 sen and 44 sen.

Over the past year, Censof has surged some 54.2%, after hitting a low of 20 sen in November last year.

Its net profit fell to RM4.6 million in the financial year ended Mar 31, 2024 from RM5.9 million in the previous year.

This was on the back of slightly higher revenue of RM104.7 million versus RM102.8 million.

The financial management solutions provider was dragged by the local councils was delaying contract renewals pending the implementation of national ePBT 3.0 for all local councils’ system.

Moving forward, it believes the recent Budget 2024 provides another opportunity with the introduction of mandatory einvoicing for taxpayers with annual income or sales exceeding RM100 million, starting from August 1, 2024.

E-invoicing for taxpayers in other income categories will be enforced in phases, with a comprehensive implementation target of July 2025.

Censof said it will continue to play a key part in meeting the evolving digitalisation needs of the public and private sectors and e-invoicing mandate opportunities by leveraging on its strength.

To mitigate the risk of fluctuations in currency exchange rates, the company said it will closely monitor currency trends and adjust our procurement strategies as needed to mitigate any potential negative impacts

Late last year, there were pockets of positive news flow for Censof.

In December, it bagged a RM9.46 million contract from the Road Transport Department (JPJ) for the maintenance, verification and calibration services of 48 weighing instruments at enforcement stations.

In July, Censof secured a RM13.38 million contract from the Companies Commission of Malaysia to develop a financial management system.

The contract also pertains to the supply, implementation, warranty, support, maintenance, and licences of the financial management system.

Surely, these small pockets of contracts are positive to Censof but it would need to win more contracts in order to show higher revenue and subsequently net profit.

In the meantime, there is trading opportunity for the software company as it charts towards better financial performance and this would eventually be reflected in its share price.

More articles on The Daily Pulse of Bursa Malaysia
Multiple catalysts to spur Sunway share price

Created by zaclim | Jul 25, 2024

Sunway is hitting the right notes given its exposure to rising property sector and booming data centre-related deals. Investors are also awaiting the spinoff of its medical arm.

RCE Capital in the spotlight as it might surpass its previous high

Created by zaclim | Jul 24, 2024

RCECAP, non-bank financial institution, might see further upside on expectations of a hike in civil servants’ salaries. With a proposed bonus share issue, this might propel the counter even higher

Laser vision on Optimax as it looks appealing

Created by zaclim | Jul 22, 2024

Optimax Holdings Bhd has set its sights on an upturn in its result after a less than desirable year end This augurs well for the company and investors may want a piece of the boom

Tasco gains steady upward momentum despite poorer 4Q numbers

Created by zaclim | Jul 22, 2024

Total logistics solutions provider has been hit by freight rates that fell to pre-pandemic levels. Hopes are high that the company will recover and trend higher.

Teo Seng looks poised for further uptrend

Created by zaclim | Jul 19, 2024

Integrated layer farming company Teo Seng Capital Bhd is garnering much attention as it has almost doubled in terms of share price in the past year. Shold investors continue to hold on to it?

Super interest in Superlon with attractive entry point

Created by zaclim | Jul 18, 2024

Price rose to a 52-week high of RM1.45 as it posted more than 3-fold increase in its net profit 4QFY24. Now that the counter has trended lower, indicate a good time to consider investing in Superlon

Banking on a big gain from Unisem but not immediate

Created by zaclim | Jul 16, 2024

Unisem (M) Bhd is slowly but surely regaining its lustre. All things are moving towards better days for the manufacturer of semiconductor devices.

More upside for Tex Cycle as it goes on M&A sprint

Created by zaclim | Jul 15, 2024

Texcycle has been on the upcycle in terms of share price, touching a record high of RM1.49. It has lost some ground since its high but the counter is trending out recently.

ATA IMS sees bright light as it surges past 2-year high

Created by zaclim | Jul 15, 2024

Electronic manufacturing services provider ATA IMS Bhd has been trading higher in the last couple of weeks and looks to be able to sustain its upward momentum. Is it still time for investors to enter?

Kobay saw poorer 3QFY24 results but saw positive share price momentum

Created by zaclim | Jul 11, 2024

Kobay Technology Bhd is seeing upward traction again after trending lower since touching a year high of RM2.58. Can it surpass its recent high?

Be the first to like this. Showing 0 of 0 comments

Post a Comment