KUALA LUMPUR (July 1): Vsolar Group Bhd’s share price soared to a new high today, fuelled by the counter’s robust trading volume of 1.015 billion shares, which far exceeded its 200-day average volume of 17.11 million.
The stock — which was the most actively traded across the bourse today — settled 30.77% or two sen higher at 8.5 sen on market close after the solar energy firm yesterday reported a narrower net loss of RM366,000 for the third quarter ended March 31, 2020 (3QFY20) versus RM648,000 in the corresponding quarter a year ago.
The group’s market capitalisation stood at RM34.9 million. The stock has reversed its losses since March 16, when the stock was trading at two sen, its lowest this year. Year to date, the stock's value has increased by 40%.
Vsolar’s narrowed net loss for 3QFY20 was achieved on the back of higher revenue of RM880,000, over six times the RM142,000 it achieved a year earlier, boosted by higher demand from information technology product sales during the quarter.
The group, however, saw its net loss widen to RM2.28 million for the nine-month period ended March 31, 2020 (9MFY20) compared with a net loss of RM1.22 million a year earlier, though revenue grew 50% to RM1.92 million from RM1.28 million.
The group said it is reviewing several renewable energy projects including examining opportunities to participate in the Government’s drive to increase investments in the revised Net Energy Metering (NEM) Scheme.
On June 16, the loss-making firm announced that it was looking into developing a large-scale solar facility under the Energy Commission’s LSS@MenTARI programme.
The ACE Market-listed group plans to bid for a quota under the programme, with the support of Mattan Engineering Sdn Bhd as the engineering, procurement, construction and commissioning partner to develop the project.
Maybank Investment Bank Bhd remisier Jeffry Azizi Jaafar said interest in the counter was driven by a few factors, including Vsolar’s collaboration with Mattan.
“Lately the [solar power] sector seems to have garnered positive sentiments especially from the Government. Last week TNB (Tenaga Nasional Bhd) awarded contracts to two companies for solar-related projects. This bodes well for the sector,” he told theedgemarkets.com when contacted.
“On the technical front, Vsolar has made a breakout from the resistance level of six sen on June 29. This led to the change in the share price trend from sideways to uptrend,” he added.