As expected, Neratel delivered a strong set of Q2 results, mainly due to the negative goodwill arising from the acquisition of the remaining 70% equity interest in associate.

On the operating segment, the "Telecommunication" business delivered strong results with a 75.5% increase yoy in the turnover due to higher sales of the microwave radio equipment in the Wireless infrastructure network in the MENA (Middle East and North Africa) market. The "Infocom" segment disappointed in the quarter due to lower sales in its network infrastructure and Payment Solutions (POS). The overall operating business segment remains stable year on year and I just had a feeling that they have yet to deliver the growth investors are expecting in Neratel.

Management has indicated that the outlook remains stable but with keen competition along its main core business. OSK has published a report earlier stating that the management has expected ...