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LFE Corporation Bhd (-ve)
LFE (Fundamental: 0.15/3, Valuation: 0.8/3) was ‘Red Flagged’ by the system, suggesting that investors should exercise caution while trading given its low fundamental score. It has gearing of over 109%.

Earnings for LFE – a PN17 company – have been erratic over the past 5 years. The company provides mechanical and electrical engineering services. For 1HFY15, profit increased 55.7% y-y to RM0.523 despite an 11.5% y-y drop in revenue.

Since announcing its second quarter results on March 26, LFE has gained 70.8% to close at 20.5 sen yesterday, near its previous one-year high of 21.5 sen reached last September. Volume traded surged to over 2.4 million shares, from its average 200-day trading volume of only 111,581 shares.

Additionally, the company secured a RM350 million engineering, procurement and construction contract for Shapadu City Village in Putrajaya in December. The project is expected to be completed within 36 months.

lfe_8Apr15_theedgemarkets

This article first appeared in The Edge Financial Daily, on April 8, 2015.

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