Trek 2000

Trek 2000: Counter sets a new 52 week high today at $0.42, with share price still holding steady despite the recent market rout in the global equities market. Trek’s stellar share price outperformance could be partly attributable to its recent 2Q results, which saw the group posting an almost 4 times jump in net profit to US$1.2m, while revenue soared 61.8% to US$26.5m. Topline was led by the group’s Interactive Consumer Solutions (ICS), which includes the ThumbDrive® CRYPTO and the proprietary Wi-Fi enabled FluCard®, with increased sales to a number of new MNC customers. Meanwhile net margins expanded to 4.4% from 1.6%. Going forward, Trek is optimistic that business from these new global customers will continue to contribute positively to its performance in the coming quarters. The group aims to target growth in 3 key areas of the next generation of consumer mobile technology, namely consumer wearable, medical and cloud technologies. Trek also recently announced that it was in discussions with potential partners on collaboration opportunities regarding joint technologies development and commercialisation. Discussions are however preliminary at this stage and there is no certainty that any transaction or agreement will be entered. The counter currently trades at 80.6x trailing P/E and 2.4x P/B.