52 weeks range : rm0.60 ~ 1.45.
Buy range : rm0.60~0.70
Target profit : RM1.40
Invest : 1 ~ 2 years
Fundamental : So so..
Software and applications on the mend after business revamp:The company's other key business, software and applications, registered improved sales of RM8.8 million, up from RM3.3 million in 4Q08, but were insufficient to turn a profit yet. Still, operating loss narrowed to RM2 million in 1Q09, down from a loss of about RM7 million in 4Q08.
We expect the business will continue to improve as Green Packet reaps results from its various strategic alliances set up over the past year. Indeed, we expect the unit to return to the black in the second half of 2009 (2H09).
China has just awarded 3G licences to the three state-run telcos - China Mobile, China Unicom and China Telecom. The government has dictated that each network will be based on different platforms. Capital spending on 3G-network rollout this year alone is estimated at US$20 billion (RM70.6 billion). Green Packet already has working relationships with major Chinese telcos - the company secured its very first deal in China, with China Telecom, way back in 2003.
