KUALA LUMPUR (June 22): Bursa Malaysia Securities Bhd has issued an unusual market activity (UMA) query to Supercomnet Technologies Bhd, as its share price jumped 36 sen or 29.03% today.
The gain pushed the share price of the wires and cables manufacturer to a fresh record high of RM1.60, making it the third biggest gainer among Bursa stocks today. It later pared some of that gain to settle at RM1.50, still up 26 sen or 20.97%, for a market capitalisation of RM964.5 million. The counter’s trading volume surged to 37.45 million shares, over 16 times its 200-day average of 2.3 million shares.
Its five-year warrants expiring 2024 similarly saw a strong 25.5 sen or 34.23% jump to as high as RM1.01, before settling at 92 sen, with a gain of 17.5 sen or 23.5% for the day.
Supercomnet’s shares have seen renewed investor interest since late May, on news that the company has seen order volume for its products — cables connecting medical devices — double since the Covid-19 outbreak began. In the past month, the counter has gained 75.44%. The counter previously peaked at RM1.33 on June 17, before paring some gains in the subsequent trading days.
The group has yet to publish its financial results for the latest quarter ended March 31, 2020 (1QFY20) — the deadline for which is next Tuesday (June 30).
For its financial year ended Dec 31, 2019 (FY19), Supercomnet’s net profit rose 54.6% to RM18.82 million or 2.93 sen per share, as revenue jumped 39.28% to RM122.97 million on the back of higher sales.
Based on its FY19 results and last share price close, the counter is trading at a trailing 12 months price-to-earnings ratio of 51 times.
The company counts New York Stock Exchange-listed Edwards Lifesciences Corp and Denmark-based Ambu as its two main customers, both of which have signed long-term agreements.
Supercomnet is controlled by the family of its managing director, Taiwanese James Shiue Jong-Zone, with control over 67.67% of the company, according to its latest annual report.
The group has charted an impressive performance in the last two financial years, as its top line grew at a compounded annual growth rate (CAGR) of 88.94%, while its bottom line increased at double that rate.