Good morning.
Today, we feature a note on Supercomnet Technologies Berhad in our FundTech Radar – 9th April 2019. Supercomnet Technologies Berhad (Scomnet) is engaged in manufacturing and assembling of automotive cables, medical cable, home appliances and general usage cables. Most of Scomnet’s revenue was derived from the domestic market.
Fundamental Stance
· A strong 3-year (FYE16-18) revenue and core PATAMI CAGR of 36.2% and 75.5% respectively.
· Its FY18E core PATAMI margin rose significantly to 12.2% (vs. 7.5% in FY17).
· Scomnet is in a net cash position of RM39.5m (6.1 sen per share) as at 31 Dec 2018.
· Scomnet is a Taiwanese family-owned company.
· Following the SMP acquisition, Scomnet could potentially see positive demand for wires and cables given the Budget 2019 announcement of an increased allocation for health services to RM29bn, of which RM10.8bn is for purchases of medical equipment.
· Currently trading at 12-month trailing P/E of 48.5x, as compared to its loss-making peers.
Technical Front
Triangle breakout.
Resistances: 0.92/0.99/1.01
Supports: 0.78/0.475/0.70
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.
9th 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.
