Mestron Holdings Bhd breached its resistance level of 30.5 sen on August 15 to touch an intraday high of 32 sen. In the past 5 days, Mestron has jumped 22%.
However, there is a room to grow before it can move towards its year high of 58 sen last September. The pole maker offers various pole products such as street lighting pole, decorative pole, camera pole, telco monopole, traffic pole and oil and gas and mining light pole.
However, investors could be jittery when the counter’s intraday short selling (IDSS) was suspended in January. This was after its last done price dropped more than 15% or five sen from its reference price. Prior to its steep decline, the counter had risen 6.82% year-to-date from 44 sen.
The pole maker posted a net profit of RM3.57 million in the third quarter ended Sept 30, 2023 (3QFY2023), a 6.66% decrease from the RM3.35 million a year ago. Its performance was dragged by lower sales demand for specialty poles and lanterns.
Quarterly revenue rose 11.53% to RM41.44 million in 3QFY2023 from RM37.16 million a year ago. In the latest quarter 1Q results ended Mar 31, 2024 Mestron saw a slight decline in its net profit to RM2.1 million from RM2.6 million a year ago. This is despite posting higher revenue of RM29.8 million versus RM26.9 million.
Good thing is that it managed to generate a positive net cash from operations of RM10.6 million versus a huge deficit of RM38 million in the previous quarter.
The increase in revenue was mainly due to an increase in the sales demand for standard and decorative poles in 1Q24. Mestron derives its revenue mainly from the manufacturing segment which accounts for 77.5% of the total revenue in 1Q24. The Malaysian market remains as the largest market contributing to its revenue accounting for 91.5% of the total revenue.
Overall, the company registered a lower net profit mainly due reduction in the sales demand for specialty poles, telecommunication poles and lanterns which generally command higher sales margin.
It remains to be seen if Mestron can achieve better sales and bottom line in subsequent quarters but the 5G play could provide it the much needed catalyst.
Created by zaclim | Aug 15, 2024
AMMB Holdings Bhd has seen its share price tumbled sharply to RM4.22 after hitting a high of RM4.58 in August 1. Signs indicate more upside ahead.
Created by zaclim | Aug 14, 2024
Mikro MSC is adding another company in its portfolio and this would provide a much needed boost to its financials. The counter is already on upward momentum and signals are clear for further upside
Created by zaclim | Aug 13, 2024
After some disappointing share price performance in the past year, Catcha Digital Bhd is playing catch up, crossing the 41 sen resistance mark. Signs are that there is more upside.
Created by zaclim | Aug 12, 2024
RCE Capital Bhd has been increasing to close at RM3.20 on Aug 9. It rose to a high of RM3.40 in January from a low of RM2.21. The counter could move upwards following a consolidation phase.
Created by zaclim | Aug 12, 2024
Shin Yang Group Bhd has been treading at its year high of 98 sen recently and signs indicate it could cross the RM1 hurdle. With business diversification, the upside looks good
Created by zaclim | Aug 08, 2024
Freight forwarding and aerospace logistics provider AGX is slowing making its way up as share price climbed to reach a high of 54 sen recently. Is there more room for the counter to trend higher ?
Created by zaclim | Aug 07, 2024
Vitrox has secured purchase orders upgrades on 3D checking light sources with AI detect features for packages as well as new Chinese original equipment manufacturers (OEM).
Created by zaclim | Aug 06, 2024
Poh Kong Holdings Bhd has shown signs of further uptrend in its share price. With the recent market selldown, this is an opportune time to get your hands on the jeweller.
Created by zaclim | Aug 05, 2024
SDS Group Bhd managed to surge to a record high of RM1 recently. Although there are doubts if the share price uptrend will continue, signs indicate that the counter may see further upside