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Positive development pushes up mTouche shares

mTouche signs partnership to develop digital media platform

KUALA LUMPUR: mTouche Technology Bhd remains healthy with zero gearing, while positive business development has helped boost its shares, said executive director Tang Boon Koon.

He said the mobile value-added and digital media services provider had sealed a couple of memorandum of understanding (MoUs) and definitive agreements this year while its zero gearing was shown in the last audited account for the financial period ended June 30, 2017.

In a recent Bursa Malaysia announcement, the company has returned to the black after posting a profit after tax of RM662,000 for the financial period ended June 30, 2017 compared to last three years of financial losses.

“The company has turned into the black. We also don’t have any gearing, we don’t have bank loans and all that,” he told Bernama News Channel here today, adding that the company’s share price had risen 4.35 per cent to 24 sen on the back of its recent business development which indicates potential earning visibility.

mTouche had recently forecast a possible RM2.6 billion in revenue from the contract to build, install and operate the SMART4 public phone and WiFi hub terminals in Thailand, the deal which is still at the MoU stage.

On Dec 5, 2016, it announced a renounceable rights issue of up to 557.50 million new ordinary shares.

The rights issue is together with up to 278.75 million free detachable warrants (Warrants C) on the basis of six rights shares and three free warrants C for every two existing shares held on the ex-dividend date, Sept 29, 2017.

An analyst expects mTouche Technology to reward its subscribers with a potential profit of close to 40 per cent or eight sen for every right shares subscribed at 20 sen.

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