Hot stock: Serial System shares up 8.8% in early trade after guiding for net profit for H1

SERIAL System S69 shares gained 5.2 per cent on Wednesday after it said it will likely swing to a net profit for H1 FY2021, from a loss for the same period a year ago.

The counter hit a high of 14.8 Singapore cents as at 9.19am on Wednesday, up 1.2 cents or 8.8 per cent, before easing. The counter rose again in the afternoon, to 14.6 cents as at 3.11pm, then subsided to its final closing price of 14.3 cents for the day.

No married deals were recorded, according to ShareInvestor data.

In a bourse filing on Wednesday, the group said its financial performance for H1 FY2021 will likely improve "significantly" on year, from a net loss of US$4.5 million for H1 FY2020.

The group attributed the growth to its business recovery strategies, which included widening its base of suppliers and customers in the electronics components segment amid an increased demand for semiconductors, particularly in China, and growing its consumer electronics segment in South-east Asia.

It also made efforts to reset group-wide cost structures and streamline efficiencies which contributed to a leaner operating mode and better margin efficiency.

Serial System expects to release its unaudited results for the half-year period on Aug 13.