Regarding Ingress Corporation Again

Here's an update to the posting made on Ingress Corporation this morning.

Saw this Dow Jones newsclip.

• 0152 GMT [Dow Jones] Ingress Corp (7112.KU) +8.7% at MYR1.13 in heavy trade, may extend gains to as high as MYR1.25 in coming days; company has secured more than MYR400 million in orders from now till 2012 from automotive players in Thailand and Indonesia. Ingress also hopeful of announcing similar contracts before year-end, according to BT. "Buying momentum will be sustained if Ingress manages to secure any one of the of the jobs it's currently bidding for in power, engineering and rail electrification projects," dealer adds. (VGB)

Gaining 8.7% on news that it has secured myr400 million in orders?

LOL! My, what about the company's ability to turn the orders into profits?

Let me share something about its PER (power, engineering and rail projects).

1. fy 2007. Quarterly rpt on consolidated results for the financial period ended 31/1/2007

pg 16.
Power Engineering (PER) registered a loss before tax of RM7.58 million while rail electrification associate contributed RM6.76 million to result in an overall PER loss before tax of RM0.82 million.

2. fy 2006. Quarterly rpt on consolidated results for the financial period ended 31/1/2006

There was a 50% increase in revenue for PER. Both PER and rail electrification associate benefited from the satisfactory progress of the projects undertaken. (Ingress PER had a profit of 1.3 million)

3. fy 2005. Quarterly rpt on consolidated results for the financial period ended 31/1/2005

PER recorded improved revenue of 27% from preceding quarter but did not achieve favourable result due to losses in the existing substation and transmission works as mentioned above. (Ingress PER recorded losses of 3.567 million)

4. fy 2004. Quarterly rpt on consolidated results for the financial period ended 31/1/2004

PER and associate company, Balfour Beatty Rail Sdn. Bhd., experienced slowdown in progress. Despite the favorable increase in revenue from preceding quarter, PER had to contend with the extra costs associated with the additional time to complete the projects and the unfavorable foreign exchange on the Euro. (Ingress PER made a profit 69k for the fiscal year)

5. fy 2003. Quarterly rpt on consolidated results for the financial period ended 31/1/2003

Despite the high turnover, PER had to content with costs related to delays for which possible compensation has not been considered. (Ingress PER made 417k for the fiscal year)

So Ingress's PER (power, engineering and rail projects) business, it's rather not too exciting eh? And if you total the last 5 year's performance, its PER division simply lost money!