Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Nov 10): Shares in Solution Group Bhd rebounded from its one-year low to rise as much as 25 sen or 58.8% on Wednesday (Nov 10) after the CanSino Covid-19 vaccine manufacturer projected a return to profit in the financial year ending Dec 31, 2021 (FY21).

The counter last traded at 60 sen, still up 17.5 sen or 41.18% after rising to 67.5 sen earlier. It was the third most active counter on Bursa Malaysia, with 61.38 million shares traded at noon, more than five times its 200-day average of 11.87 million shares.

On Tuesday, Solution Group said it is “expecting a turnover of approximately RM300 million with a profit margin of 10% to 15% for the financial year ending [Dec 31,] 2021”.

This, however, partly hinges on sales of CanSino vaccine doses to the private sector — the group said it is expecting approval for that “soon” — as well as approval for CanSino as a booster shot.

The group has a contract with the Ministry of Health to supply 3.5 million doses, where it currently has 900,000 doses remaining to be delivered in November and December.

Shares in Solution Group, which is also involved in the engineering equipment business, have come off a high of RM1.94 in December 2020.

The counter rallied nearly 20 times in 2020 following news of its venture into Covid-19 vaccine manufacturing. The group has been loss-making since FY18. For the first half ended June 30, 2021, it booked a net loss of RM1.22 million, although revenue more than doubled to RM14.13 million.

Edited ByLam Jian Wyn
      Print
      Text Size
      Share