Good morning.
Today, we feature a note on Brite-Tech Berhad in our FundTech Radar – 2nd Oct 2018. BTECH is an integrated water purification and wastewater treatment solutions provider. Its business activities comprises of environment products & services and system equipment and ancillary products. Its business segments are principally operated in Malaysia only.
Fundamental Stance
· A steady 3-year (FYE15-17) revenue and core PATAMI CAGR of 2.7% and 5.4% respectively.
· Its FY17 PATAMI margin was 14.3%.
· Net cash position of RM1.2m (0.5 sen per share) as at 30 Jun 2018.
· Consistent dividend payment since FY02. Current dividend yield of about 6.4% with div. payout ratio of 109%.
· Continue to focus on its existing business activities and concentrate on its core competencies while as the same time, improve its operational efficiency and cost management.
· Currently trading at 16.3x 12-month trailing P/E (15.9x if excludes 0.5 sen net cash per share), a 7.4% premium to its 3-year historical average P/E.
Technical Front
Trading volume is fairly low.
Resistances: 0.33/0.40/0.55
Supports: 0.22/0.17/0.13
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.
2nd Oct 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.
