Good morning.
Today, we feature a note on Genetec Technology Berhad in our FundTech Radar – 25th Sept 2018. Genetec is principally involved in provision of high-quality, responsive and cost-effective design, manufacturing automated industrial systems, equipment and value-added services to its global customers in the Hard Disk Drive (HDD), Automotive, Electronics, Pharmaceutical, Semiconductor and Consumers industries. In FY18, 46% of Genetec’s products were exported to overseas markets.
Fundamental Stance
· Genetec saw its performance improved and turned profitable in FY18.
· Its FY18 core PATAMI margin was 2.9%.
· Net cash position of RM2.1m (5 sen per share) as at 30 Jun 2018.
· Genetec resumed its dividend payment of 2.5 sen DPS, translating into 1.4% dividend yield in 1QFY19.
· Strengthening USD against MYR could potentially have a positive impact on its business.
· Anticipates the HDD industry to remain challenging.
· Genetec foresees China’s automotive industry will continue to grow and look to penetrate further into this market.
· Currently trading at 13.9x 12-month trailing P/E (13.5x if excludes 5 sen net cash per share), a 68.3% premium to its peers.
Technical Front
Uptrend remains intact.
Resistances: 1.85/2.08/2.24
Supports: 1.5/1.35/1.30
The above information is extracted from CIMB Research Report. For the full research reports, outlook and disclaimers, please logon to your account on www.itradecimb.com.my and click on <Research> Tab under Malaysia.
This FundTech Radar report is intended for educational purposes only. It represents a preliminary assessment of the subject company, and does not represent initiation into CIMB's coverage universe. It does not carry investment ratings and CIMB does not commit to regular updates on an ongoing basis.
25th Sep 2018
Disclaimers: This distribution is by CIMB Investment Bank Berhad (“CIMB”) in Malaysia only. The views are our own as of this date and subject to change. No further distribution is allowed without our prior written consent. CIMB, its related corporations, affiliates and business partners make no recommendation, offer or invitation to transact in any securities, futures contracts or other instruments. Please make your independent evaluation, consider your own investment objectives and financial situation and consult your own professional advisers before participating in any transaction.
