-Compared to same period last year Vivocom’s profits have improved by 2,622%!

-Share price has soared from 9 sen in Sept 2015 to 34 sen at last Friday's close, a stratospheric 277.78% jump!

PETALING JAYA, May 12 (Bernama) -- Vivocom Intl Holdings Berhad (Bursa stock code: 0069)’s transformation to becoming what the market has termed a “Construction Giant in the Making” is firmly underway as the company announced an extremely bullish set of results for its first quarter 2016.
 
Announcing its financial quarter ended 31 March 2016 to Bursa Malaysia, Vivocom’s quarterly revenue surged to RM141.54 million with profit before taxation soaring to RM33.29 million for the first three months of 2016.

Please Click hereAfter accounting for taxation and minority interests, net profit came in at RM19.87 million, a 2,053 percent giant of a jump from the RM923,000 posted in the previous corresponding period when it was still known as Instacom Group Berhad.
 
Vivocom’s net profit of RM19.87 million means that the group has exceeded analysts’ (CIMB Research) estimates by a staggering 75.8 percent!
 
This huge jump in revenue and profits was attributed to Vivocom’s construction division which posted PBT of RM30.01 million of the back of RM125.81 million in revenue.
 
Vivocom on a roll… keeps winning new projects!
 
MIDF Research had described Vivocom as “transforming into a serious player within the various segments of the construction value chain as it assumes the roles of project manager, main and sub-contractor. Vivocom is seen as a beneficiary of China’s massive FDI into emerging economies as part of their ‘New Silk Road’ development policy.”
 
This bright outlook, added MIDF, stems from the company’s project management and sub-contractor business model, healthy financials and strategic position in construction value chain.
 
In the past fortnight, Vivocom announced that it has won two projects in Perak amounting to RM250 million. (See: Vivocom on a Roll, keeps on winning for contracts!).
 
To date, Vivocom has secured projects totaling more than RM1.36 billion. The Group’s construction pipeline has also swelled to about RM3 billion in contracts at the finalisation stage – with more projects wins coming up very soon!

Analysts bullish projects on Vivocom and its “Darling Stock” status
 
Research houses view Vivocom as a “darling stock” and are generally bullish given the company’s extremely bright future ahead.
 
A summary of research houses’ coverage are as follows:

-Maybank Investment Bank said that “Brokers are bullish on the stock…Key parameter to monitor is the value of new job win which is crucial to confirm the bullish expectations on the stock.”
 
-Mercury Securities described Vivocom as having “promising prospects and outlook” and “can be held for the medium to long term, especially given that it takes months and years for its earnings and returns to accumulate”. The company recently issued a ‘buy call’ on Vivocom with a target price of 68 sen by end-2017.
 
-MIDF Research, meanwhile, has described Vivocom as “New Silk Road Beneficiary” and, in an updated report last week, said that the company is now at “The New Game Changer” phase. MIDF Research values the company at 59 sen per share.
 
-CIMB Research believes that Vivocom shares should justifiably be at 67 sen per share. 

Vivocom is currently the largest company on Bursa Malaysia’s ACE Market with a market capitalisation of RM1.166 billion, assuming all its warrants is converted into shares.
 
The company’s shares have consistently been traded in the Top 10 volume leaders in KLCI, showing remarkable volume and liquidity sustained over the last 7 months when some seven billion shares were traded.  The company also commands a huge shareholders base.

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Vivocom executive director Choo Seng Choon remarked: “Whilst we are delighted with our solid Q1 financial performance, we remain committed to working harder and delivering better and stronger results in the quarters to come. We will not rest on our laurels and the management team have all pledged to walk the extra mile to secure more projects in the foreseeable future and to ensure that our projects are delivered promptly and on time and to the highest standards possible for our clients.”
 
 “The BOD is confident and optimistic of the Company’s future outlook, and is looking at various ways to rewards its loyal shareholders. Amongst the various options the BOD is considering is possibly a bonus share issue or a free warrants issue. Once finalised, they will be announced in due course,” he added in passing.
 
Although a slew of good news has already been announced, the strong showing thus far is just the “tip of the iceberg” of more positive developments ahead. Stay tuned!

SOURCE : VIVOCOM INTL HOLDINGS BERHAD

FOR MORE INFORMATION PLEASE CONTACT
Name: Choo Seng Choon
Executive Director 
Email: info@vivocomgroup.com

--BERNAMA