Profit for Scicom has been trending downward since its peaked back in FY17 with total profit to shareholder amounting to RM45.4mil. As of Dec 18, the 12 months trailing profit was only RM23.2mil which is only half of what they managed to achieve in FY17. Given the disappointing 1H19 result, there is a potential that FY19 profit would be lower than that of FY18 with a profit target of around RM20mil to RM25mil (1H19 profit was only RM11.3mil). At the top range of the target and using the current share price, the company would still be value at PE valuation of 17.2x. This is high for a company with negative profit growth.
If you are looking to hedge your portfolio outside of Scicom (due to its weak earnings outlook and relatively high valuation), I would recommend you to look at MBMR. (https://klse.i3investor.com/servlets/stk/pt/5983.jsp)
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.1x PE based on FY18 profit of RM166mil. PB is low at only 0.7x BV.
FY19 should deliver another profit growth year to the company. Profit growth will again be driven by the performance of Perodua (via MBMR 22.6% holdings in Perodua) from the still strong sales of new Myvi, sales of SUV Aruz and the introduction of the newly revamp Alza sometime in the 2H19. Aruz which commands a higher margin compared to other models, will help improve the total profit margin of Perodua (which will flow to MBMR’s bottom line as well).
MBMR is expected to achieve a profit of RM200mil in 2019. At the current share price, the company is being valued at only 5.0x which is a lot lower than the industry average of 15x PE. As an example, UMW (another company with exposure to Perodua) is currently trading at a PE multiple of almost 20x.
SCICOM (0099) - Technical & Fundamental Analysis April 6, 2019 | HONG WEI GIET
Technical Analysis ============= - After the quarterly report announcement on Nov 22, 2019, SCICOM shares price drop by 46.65% due to poor financial performance.
- SCICOM shares price has breakout neckline on Nov 30, 2019.
- It drops further and opened at RM0.885 on Dec 17, 2019, after the government announced the cancellation of Prestariang Bhd's national immigration control system (SKIN) project.
- The shares price re-bounced technically after the significant drop in a short period.
- It tried to challenge EMA 120 days (Half Yearly line) but it fails and drops below EMA 60 (Quarterly line) and EMA 20 (Monthly line) on Mar 5, 2019
- Thus, selling pressure continues to become stronger to further push SCICOM shares price lower.
The company’s future looks uncertain with declining results. Their services are not seasonal and may fall out of favor faster than the shareholders know, maybe permanently. Not easy.
Breakthrough, last time you posted negative opinions about SciCom, then deleted them when the price dropped. This made your claims spurious especially now you are suddenly praising scicom.
SCICOM is a great example of value trap. Behind the reason is the falling share price which raised its trailing Dividend Yield (DY) to >7%. Fundamentally the company is in downward spiral with both revenue and EPS down year by year. Buying based on high trailing DY alone is actually a bad idea as price will keep on going down and so do the future DY. The price fall will far offset the dividend that you may get.
shpg22 compare preceding quarter is giving some guide how the Company is performing. As long as they can keep such uptrend, their result shall be better than same quarter last year is not an issue.
Nonsense accuse, Scicom won the service thru tender basis. Maybe Party Negara think this biz so easy to earn money, looking the chance to rob biz from Scicom.
SCICOM Bhd revenue from EMGS for 2018 is RM49 million ie RM1,000 x 49,000 students. This is 52% of their total revenue from Malaysia operations of RM94 million for 2018.
Now which moron is trying to fool investors by saying its less than 1%???
EMGS Chairman, Datuk Abdul Rahman has today confirmed to public that the contract signed with EMGS during BN time is ‘unfair, was done in haste and WITHOUT Cabinet Approval!!!
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....
Ketupat
2 posts
Posted by Ketupat > 2018-12-14 15:13 | Report Abuse
0.91 today, the funds must have hit their stop-loss