Good morning.
Today, we feature a note on Fitters Diversified Berhad in our FundTech Radar – 2nd April 2019. Fitters Diversified Berhad (FITTERS) is a “One-Stop” fire protection specialist. In 2017, FITTERS ventured into property development followed by renewable energy and green mill a year later. In 2013, FITTERS entered into a venture with Molecor Tecnologia S.L. and Ricwil (Malaysia) Sdn Bhd to manufacture and distribute state-of-the-art HYPRO PVC-O pipes in Malaysia and South East Asia. Most of FITTERS’s revenue was derived from the domestic market.
Fundamental Stance
· Turning into the black in FY18E.
· Its FY18E core PATAMI margin was at 4.4%.
· Its net gearing ratio remains at a conservative level of 0.31x.
· PVC-O pipes, which could potentially become major contributor to the Group, will be utilised to replace ageing asbestos cement pipes in Kelantan and Johor, and will be expanded to other states in Malaysia in the near future as PAAB plans to upgrade water infrastructure in states under its jurisdiction to ensure uninterrupted supply of water to customers.
· Currently trading at 15x 12-month trailing P/E, which is a 42% discount to its domestic peers P/E.
Technical Front
The uptrend for the stock remains robust.
Resistances: 0.520/0.560/0.600
Supports: 0.475/0.460/0.43
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 Apr 2019
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.
