Here’s why the Tuas (ASX:TUA) share price is leaping 10% to a record high on Friday

What’s in store for the company’s AGM?

| More on:
asx 200 share investor climbing up stairs of an upward trending red arrow into the sky and clouds

Image source: Getty Images

The Tuas Ltd (ASX: TUA) share price is rocketing to an all-time high today. This comes ahead of the telco provider’s planned annual general meeting (AGM) today, covering business updates and its FY22 outlook.

At the time of writing, Tuas shares are soaring 11.86% to a record high of $2.17. In contrast, the All Ordinaries (ASX: XAO) is up 0.14% to 7,546.5 points.

Key takeaways at Tuas’ AGM

The Tuas share price is rallying into unchartered territory as investors appear excited about the company’s growth plans.

Ahead of its AGM, Tuas highlighted in its pre-released presentation the group financials, including TPG Singapore’s performance.

The company achieved unaudited revenue of $12.2 million for the 3-month period ending 31 October 2021.

Earnings before interest, tax, depreciation and amortisation (EBITDA) came to $3.7 million, compared to a loss of $2.4 million in the prior quarter. TPG Singapore accounted for an unaudited $3.8 million for Q1 FY22, reflecting the strong performance in a challenging environment.

Tuas closed at the end of October with a cash balance of around $92,000, including term deposits to secure bank guarantees.

Its subscriber base has continued to grow, with the latest figures reaching 435,000 subscribers as of 30 November. Average revenue per user (ARPU) stands at around $9.45.

In regards to the 5G updates, the company has been provisionally awarded a 5G spectrum in the 2.1 GHz spectrum auction. At a cost of $31.72 million, the deal comes with a 15-year license. This allows TPG Singapore to use this spectrum in operating its own 5G network in the country.

The rollout begins in the first quarter of 2022, with the launch of 5G standalone services in 2022.

Looking ahead, Tuas advised that its EBITDA for the year is above the current budget.

Tuas share price snapshot

In addition to today’s significant rise, the Tuas share price has jumped over 210% in the past 12 months. However, when looking at year-to-date performance, the company’s shares are up around 180%.

Tuas commands a market capitalisation of about $978.85 million, with approximately 463.91 million shares on its books.

Should you invest $1,000 in Tuas right now?

Before you consider Tuas, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Tuas wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Record Highs