Neratel

Neratel: 3Q net profit more than doubled to $5.69m, from $2.66m yoy, backed by higher turnover from both its telecom and infocomm business segments. This in turn lifted net profit for 9M12 to $15.53m, more than twice the earnings for the previous corresponding period. Gross profit margin grew to 31.4% from 27.9% yoy. Over the nine months, its telecommunications segment turnover improved 42.3% yoy to $47.4m due to contributions from the new markets in the MENA and North America and higher sales in the wireless infrastructure network business Turnover in infocomm rose 14.7% yoy to $86m on higher sales of its products and services. The value of its order book grew 18.6% to $87.5m from a year ago. The group sees stiff competition in both industries though growth is still expected in many market sectors. In the telecom industry, it faces pricing wars and restrictions in licensing and regulatory framework in some countries. Recall that DMG reinitiated on co. few days ago with a Buy call and TP of $0.64. We note that latest 9M12 earnings place grp on track to hit house FY12 estiamates.