KUALA LUMPUR: IQ Group Holdings Bhd's shares were among the top gainers in the morning session on Bursa Malaysia today after posting a better than expected first quarter financial result.
At 12.30 pm, IQ shares perked 20 sen or 16 per cent to RM1.45 with 1.11 million shares transacted.
RHB Research in a research note today said IQ's results were above expectations, with the net profit of RM7.5 million accounting for 60 per cent of its full-year estimate.
It said the better results was driven by higher sales and favourable foreign
exchange rates, with both the manufacturing and trading divisions recording higher sales contributions, up by 47 per cent and 44 per cent year-on-year respectively.
"First quarter results gave a boost to our view, as we believe IQ's earnings
could continue growing in the coming years, after its internal restructuring and business streamlining activities," RHB Research added.
The research house said the company's stronger trading activities in the United States, Europe and Japan markets were underpinned by strong orders, better sales of its new products and gradual recovery in the respective regions.
It said the company is channelling its focus on expanding the business and plans to launch a series of new products in the financial year 2015.
RHB Research has maintained a "buy" call on IQ, but revised upward its target price to RM2.03 from RM1.84. -- BERNAMA