KUALA LUMPUR (Sept 9): Green Packet Bhd and its warrant rose sharply in active trades on renewed retail trading play although there was no news flow, said retail dealers.

“We don’t hear any positive news about the company today but we do see retail play coming in from Sept 2 when it was at 31 sen per share. Though loss-making, this firm is still a significant mobile broadband player,” said Goh Kay Chong, senior remisier at SJ Securities Bhd.

At 12.30 midday break, Green Packet surged 6.5 sen or 20% to 39.5 sen per share, on trades of some 19 million shares; while its warrant soared 4.5 sen or 50% to end at 13.5 sen on 26.5 million units.

While Green Packet was the 6th most active counter, its warrant ranked 4th on the active list.

According to exchange filings, net assets per share of Green Packet as at end-June 2013 was 15 sen.

“I have checked this morning and there is no news at the moment. So we reckon it could be retail trading play or speculative play by some big players.

“Due to regular quarterly losses, this company’s share has suffered sell-downs. The stock price is now at its lows and is seen coming back on technical rebound. But I am wary of this stock as there is too much speculative play by hit-and-run players,” said another senior dealer.

For the first half of this year, Green Packet incurred a wider total loss of RM39.6 million compared to loss of RM32.6 million a year ago. But revenue rose to RM300.3 million, from RM266.5 million.

However, Green Packet’s managing director C.C. Puan said in a statement before releasing the company’s second quarter results that the firm had posted huge increase in its earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter due to its business transformation plan.

The mobile broadband services provider posted an EBITDA of RM9.4million, a 116% year-on-year jump. Green Packet’s revenue for the second quarter rose 9% to RM151 million.

“We revised our strategies for better performance all-around in view of challenging market conditions and it is proving effective in getting us on track for 2013,” he said.

According to Puan, better cost management and lesser capital expenditure this year should see EBITDA margins improving.

Recently, the company also announced it intended to sell a property of a wholly-owned subsidiary for RM49 million to help pay off debts and reduce gearing. This will also help raise the net assets per share to 22 sen.

Dealers said Puan, who has recently replaced his long-time friend Michael Lai as chief executive officer of P1, might be another factor that boosted Green Packet’s share price. Puan is the controlling shareholder of Green Packet.

Packet One Networks (P1) is a telecommunications, broadband and 4G service provider. The company, founded in 2002, is the main subsidiary of Green Packet.