Tuas Ltd (ASX: TUA) shares are on course to end the week on a positive note.
At one stage today, the ASX 300 stock was up as much as 9% to a new record high of $6.19.
The Singapore-based telco's shares have eased back a touch since then but remain up 6% to $6.01 at the time of writing.
Incredibly, this latest gain means that the TPG Telecom Ltd (ASX: TPG) spin-off's shares are now up 120% since this time last year.
To put that into context, a $10,000 investment a year ago would now be worth a cool $22,000.
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Why is this ASX 300 stock soaring today?
Investors have been fighting to get hold of the company's shares today after it released an update ahead of its annual general meeting.
According to the release, during the first quarter of FY 2025, the ASX 300 stock's unaudited revenue was $35.5 million.
If you were to annualise this, it would mean revenue of $142 million. This is 21.2% higher than FY 2024's revenue of $117.1 million. Management advised that this reflects "continued mobile growth supported by product uplifts and ongoing network quality upgrades."
It has been a similar story for the company's earnings before interest, tax, depreciation, and amortisation (EBITDA).
Tuas revealed that its unaudited EBITDA was $16.1 million for the three months. This annualises to $64.4 million, which is 29.6% higher than the $49.7 million it recorded in FY 2024.
It also means that the ASX 300 stock is operating with higher EBITDA margins so far in FY 2025.
Tuas' EBITDA margin was 45.35% for the three months, which is up from 42.4% in the last financial year.
But potentially getting investors the most excited was management revealing that it achieved an unspecified net profit after tax for the first quarter. This appears to be an indication that the telco is now in its profitable era after posting losses each year since its demerger.
Where next for its shares?
Unfortunately, brokers currently feel that Tuas shares are trading above fair value.
Both Citi and Morgan Stanley have the equivalent of buy ratings on its shares with price targets of $5.55 and $5.50, respectively. These price targets imply potential downside of 8%+ from current levels.
Though, it is worth noting that these brokers have not yet update their recommendations to reflect today's update. So, there's always a change that they could boost their price targets higher next week once they have fully digested today's update.
