KUALA LUMPUR (Nov 19): Ace-market listed Solution Engineering Bhd has soared as much as 13.5% to 29.5 sen in morning trades today, lifted by its impressive 3QFY14 results reported yesterday.
As at 11:30am, Solution Engineering has pared some gains to settle at 28.5 sen. With some 53.07 million shares changing hands, it was the most active stock traded across the local bourse.
Solution Engineering has in fact been steadily gaining traction since late April this year, rallying 115.38% to 28 sen at the time of writing from 13 sen on April 28. This was after a sharp correction of 68.67% from a high of 41.5 sen on Feb 5 to 13 sen on April 28 this year.
Yesterday, the teaching equipment provider posted a net profit of RM700,000 in its third financial quarter ended Sept 30, a jump of almost 17 times its profit of RM42,000 a year earlier. Revenue came in 116.87% year-on-year higher at RM8.1 million from RM3.74 million.
In a note yesterday, Solution Engineering explained that the improvement in both revenue and profit was mainly attributable to completion of projects as well as recognition of revenue during the current quarter.
It added that it had a strong orderbook in 2014. “In addition to receiving orders from local public and private educational and skills institutions, the group had also received significant sales from Africa, the Middle East, Southeast Asia, among others, through its distributors.”
Additionally, it declared an interim single-tier dividend of 1 sen per share yesterday, to be paid on Dec 12 this year.
Solution Engineering is involved in the design and development of teaching equipment for engineering education such as chemical, mechanical, electrical and control engineering.
Its products are used in public and private universities, university colleges, polytechnics, skilled training centres, advanced technical institutions and colleges.