The Daily Pulse of Bursa Malaysia

Glowing prospects for Glostrext boosts share price

Publish date: Mon, 24 Jun 2024, 08:58 AM
0 127
Daily Pulse is a blog that provides daily stock updates and insights on the Bursa Malaysia.

Follow us in telegram for more daily discussion

Glostrext Bhd is making good strides since its listing on the ACE Market last August. The geotechnical instrumentation service provider is likely to stage a a stronger recovery from its consolidation phase.

The counter should see support level at 23 sen with immediate resistance level at 26.5 sen be broken with renewed buying interest. It may continue to lift price higher to subsequent resistance level of 29 sen.

Glostrext performed very well on its listing day, touching a high of 65 sen from its IPO price of 19 sen. After much profit taking, the counter closed at 25.5 sen or a 32% premium on its maiden trading day.

Interest in the smallish counter may stem from its exposure in the country’s booming construction industry. The company may be new on Bursa Malaysia but it has a long history in the construction space.

 It was established in 1992 with its first major job providing pile instrumentation services for the construction of Petronas Twin Towers. The company also provided structural and ground instrumentation and monitoring services for the construction of a hotel and car park building in Genting Highlands. Its business is just not in Malaysia as it has expanded to other countries as well.

In 2021, Glostrext bagged its first job in Cambodia providing pile static load test services for the construction of Naga 3 Integrated Entertainment Complex in Phnom Penh.

For the financial year ended Mar 31, 2024, the company posted a net profit of RM1.48 million on the back of RM25.5 million revenue. There were no comparison numbers. It said Singapore was the group’s largest market, accounting for 74.9% of the Group’s revenue in the 4QFY24.

However, its revenue decreased 24.2% to RM6 million as compared to RM8 million for the immediate preceding quarter. This was mainly due to a lower number of service engagements from the provision of pile instrumentation and static load test services during the current financial quarter under review. 

Last October, Glostrext bought a 1,735-sq-ft office space in Singapore for S$750,000 (RM2.61 million).

Glostrext Singapore currently owns two units of properties in the same building, which are #06-09 30 Kaki Bukit Road, Empire Techno Centre (office) and #01-02 30 Kaki Bukit Road, Empire Techno Centre (warehouse on ground floor). With clients in Singapore, it makes sense to grow its presence in Singapore and broaden its services there.

This strategic move aligns with Singapore's Building Control Regulation of 2003, which mandates structural and ground instrumentation as well as monitoring for all construction of buildings and infrastructure in Singapore effective 2008.

Glostrext specialised services in the construction sector makes it an attractive counter given the expected increase in public and private spending on infrastructure development in Singapore and Malaysia.

This will naturally drive the growth of the geotechnical instrumentation and monitoring market as well as the share price of the company.

More articles on The Daily Pulse of Bursa Malaysia
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?

KUB may see further upside amidst takeover of CCB

Created by zaclim | Jul 09, 2024

The company recently ventured into the manufacturing of power cables and wires following a takeover exercise of Central Cables Bhd.

OCK enjoys 54% surge in share price in the past year. Can this uptrend continue?

Created by zaclim | Jul 09, 2024

OCK Group Bhd continued its upward momentum on anticipation of a record breaking year in terms of earnings. Can the good run be sustained?

Tune Protect gains investors’ interest what is brewing in this company?

Created by zaclim | Jul 09, 2024

Backed by promising growth in the air travel sector as demand for air travel continues to surge and airlines are expanding their routes and capacity.

Velesto fired up for its share price to surpass the year-high 32 sen

Created by zaclim | Jul 04, 2024

Velesto Energy Bhd saw better results in FY23 but it has not budged that much. Is it time to let go?

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

Post a Comment