We remain convinced on Supercomnet Technologies Bhd
(“Scomnet”) growth prospects thus raising our earnings
estimates by 12% and 13% for this and next year
respectively. We are reiterating our BUY call with a target
price of RM1.63 premised on 30x PER FY21 which is still at
discount to Bursa Malaysia Healthcare Index 34x PER.
Scomnet share price has surged to high of RM1.60 since our
initial coverage report back in April 2020 and has since pull
back to a more reasonable level post its 1Q20 results. For the
said period, its revenue increased by 12.7% to RM28.14m and
profit after tax rose 9.34% to RM4.09m with their medical
products segment contributing 87% of the group profit.
Automotive cable segment saw a slowdown in 1Q20 with
signs of recovery in the 2H2020.
Scomnet remains the leading Original Equipment
Manufacturer (“OEM”) of automotive cables and with their
new crown jewel - Supercomnet Medical Products Sdn Bhd
will continue to be the key catalyst for growth over the next
few years from increased spending in healthcare amidst the
Covid-19 pandemic.
Based on their profit track record, Main Board transfer would
make sense and it will serve as a re-rating catalyst to justify
their healthcare PER. To recap, its medical cables are
approved by the European Medical Agency (“EMA”) and Food
With tier 1 glove run on covid 19 second wave, today we saw rotational play to tier 2, scomnet has business grow proof and sale drive by covid. Time to buy in
@ZacChuinn91 Investopedia: "...an investor who buys the stock on its ex-dividend date or later will not be eligible to receive the declared dividend." In your case, since you purchased on the ex-dividend date itself, you will not be eligible to receive dividend.
Look like sharks is pushing prices down to eat small fishes alive. See small volume but high frequencies of buying throughout they day. You can see sharks are eating all day long. Don't fall prey to them. my 2 cents.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
mf
29,121 posts
Posted by mf > 2020-07-10 15:21 |
Post removed.Why?