@NgWS90, no secret lah. It is Stellantis for Peugeot fuel tank and wire hardness. Just completed the final product audit. Mass production starts in Oct. Estimated additional sales of RM70mil per year (in FY2023) with net profit of RM10mil (net profit margin of 15%) from this division only. So, you guys do your own math of the rest of division for FY2023 profit growth....
dear investortrader88, don't need to tell or rather show off here. i am very happy for you yet to make a good profit. Many here i believed also been keeping this counter long and cheap also. is good that we need to be prudent and humble. some make profit and some may making lost. do care for others feeling too. this is just my opinion . if i offended you, would like to say sorry first.
Refer my comments 2 months ago...."Malacca Securities upgraded its TP from RM1.51 to RM1.94 within 3 days ! The main upgrade was it expect the company to double its profit from RM25mil in FY2021 to RM48mil in FY2024. It is rather difficult to find a company which can double its profit within next 3 years....Share price could be doubled easily within next 1 or 2 years too. Please advise me if you can find other similar companies can match SCOMNET performance."
Extract from TA Research : Robust Earnings Growth. We estimate Scomnet to register a profit growth of 51.5%40.6%/22.7% in FY22/FY23/FY24 driven by existing orders from Edward Lifesciences and Ambu. In addition, strong demand from Mermaid’s declotting device, new orders secured from Stellantis and maiden contribution from IHS are expected to boost earnings significantly over the next 3 years.
Preparing for the Future. To facilitate future growth, the group will proceed with a 5-storey building expansion. The 5-storey building will provide an additional 12,000 sqm and will take about 3 years to complete. The new plant will be GMP compliance and will cater for more medical products.
Transfer of Listing. The group has kicked off the necessary preparations for transfer of listing. We opined that the move will help to lift interest on the stock, especially from institutional funds (below 15% currently).
Reasonable Valuations. Scomnet is currently trading at 26.2x PER. We opine that our target PE of 32.0x is reasonable (in-line with its 5-years mean), considering that the peers are trading at 31-36x.
The immediate TP is between RM1.90 to RM2.00. The "boost" here is after the 3q results announcement by 30Nov and transfer to Main Board (dont know when loh)
Supercomnet continued with its momentum of growth by recording its highest ever quarterly net profit of RM10.1 mil, which is a 44.4% increase from the same period of the previous year for the third quarter. This was achieved on the back of a 40.6% jump in revenue to RM45.14 mil. The stellar results were registered due to contributions from its new and existing clients, and a favourable foreign exchange rate. Thus, for the nine-month period to Sep 30, 2022, net profit is now up by 55.6% to RM26.9 mil, on the back of a 18.1% jump in revenue to RM120.98 mil. For the quarter under review, all three segments recorded an improved revenue performance as compared to the last corresponding period. The medical segment continues to be a key contributor for the Group with a revenue contribution of 56% as compared to 71% in the last corresponding period. Continuing from the previous quarter, the automotive segment continued with its momentum. It recorded a higher revenue contribution at 14%, compared to 10% in the previous period. Revenue contribution for the industrial segment also increased to 30%, compared to 19% in the previous period. Backed by our growing financial position, Scomnet is on the lookout for earnings accretive mergers and acquisition in the medical segment. Looking ahead, we are confident and optimistic with the group’s mid to long term prospects underpinned by continuous growing demand from customers in addition to several new products in the pipeline. The medical segment will continue to be our main driver, but as you can see, the automotive segment has also picked up. It will be providing some exciting growth and new opportunities in the future.
SCOMNET growth driver is just started ! Its 9-month results had achieved RM27mil (or EPS of 3.6 sen). Further assume its final quarter to achieve RM10mil (which is prudent), FY2022 full year profit could hit RM37mil or EPS of 5sen. This is just started, given its new medical products are starting into mass production, this together with its surprising good growth in its auto segment, we can expect its profit to increase by at least 50% from FY2022 toward PAT of RM60mil or EPS of 8sen. Given the industry forward PE of 30x (under bearish condition), this translate into TP of RMRM2.40 ! (this is also its previous high achieved in Nov2020 (around RM2.30)
Refer my earlier comments on 23/11, TA research share the similar profit outlook for this year, reporting a profit of RM37mil (Vs TA of RM38.2mil). Moving forward, the profit is expect to DOUBLE from RM25mil in FY21 to RM53.7mil in FY23 (vs my own forecast of RM60mil). Given our current stake of economic of increasing inflationary trend together with risk of technical recession world-wide, SCOMNET is a company that you cannot ignore if you are looking for growing stock. (However, it is NOT for dividend yield investor) Further, I believe its transfer to Main Board should be completed by Jan next year. By then, many institutions will be grapping this stock. Currently, we get to know that Pheim has started to grab the stock. Others will follow soon by end of Jan next year. Moving forward in FY23, the growth catalysts are new mass production of IHS; Auto segment will grow by 60% from its Peugeot's fuel tanks and wire harness; the completion expansion of its factory size (by additional 990 sq m). If you are looking beyond FY2023, then we should expect the raw material disruption should be minimal and the further factory expansion (take 3 years to complete) to increase its floor space by 2400 sq meter). Last and not least, they are looking for more M&A activities. It was not disclosed specifically, but my guess should be its automotive segment in EV where it requires lots of special type of wire. Other future new product launching could be too early to comment.....Its new products include Plass Rescue Occluder (pending FDA approval), Hemodialysis-Vascular-Catheters, AMBU GI SCOPE.
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....
NgWS90
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Posted by NgWS90 > 2022-09-22 11:55 | Report Abuse
Superb. Breaking RM1.60 even before the announcement of the company going main board.