Base on its total sales of RM1.33 billion last year,this could means sales upwards of RM260 million from its mobility segments in FY14,base-of-the-envelope calculations show
ECS has set up a team of 12 people focused solely on growing its smartphones distribution business and managing director,Mr Foo said that the company IT retail channel sales are still new to the group,and it is a different ball game,This is a big new market for them
Mr Foo said, the company will bank on smartphones to drive its growth this year and in the first quarter,the smartphone sales overlook tablets for the first time ever,due to the popularity of Lenovo
Industry data show that Lenovo phones were ranked NO.2 by sales as at the first quarter this year.besides Lenovo and Asus,Mr Foo also said ECS was in talks with many parties to introduce more brands into Malaysia in the near term
Sentiment is bad. No driver. Going forward economy might be bad with the impending gst. Consumerism might be dovish. Inflation might be high. Expected bad year for 2015
reasons to invest ECS are as follows:1) It has a strong balance sheet with over RM72 million in cash as at 30-09-14, 2) It has a groups of reliable person to manage the company,especially its founders of ECS still managing the company,3) it has no borrowings with zero gearing ratio,3)It has more than 3'000 outlets to sell its more than 3,000 products,4)It has a dividend policy of giving out 30% of its earnings as dividend,5)The company is involving in cloud computing and enterprise system which every business needs.Cloud computing is popular in Japan and Hong Kong.Malaysia will be the next.6) The company is expected to do very well this year.Growth will come from its business in smartphones and mobile devices
ECS managing director,Mr Foo said that ICT spending recorded a compound growth rate of 5% a year with a market size of US $8 billion(RM27 billion) and this does not even include the services segment.He said ECS always grow faster than that,and for this year ECS can easily grow at double digits,adding that it is underpinned by rising demand for smartphones and small tablets
ECS recorded strong sales growth from its ICT Distribution segment over the last five consecutive quarters,which echoes the unwavering demand for PCs,notebooks and smartphones.ECS looking to expand its smartphones distribution channel.The company recently appointed by BenQ to distribute its F5 and T3 smartphones to the Malaysia market.
Abcb fully agree with your points. ECS is a classic magic formula srock with ROIC of 17pct and EV/EBIT of only 4x. As reported by Kenanga and historically q4 us the best quarter this year is exceptional due to ppl may rush for gst spending... the highest margins are in the enterprise segment and MD has voiced out intention to make some acquisitions to boost the business in this segment...
abcb, I'm quite impressed with your knowledge on ECS(M) and would appreciate if you know why its counter part in Singapore is suspended.
Posted by abcb > Dec 19, 2014 11:45 AM | Report Abuse
Singapore listed ECS Holdings(ECS Holdings),associated ECS,ECS Holdings owns a 41% stake in the company, the Asia Pacific region's largest IT products agent and distribution companies in China, Thailand, Malaysia, Singapore, Indonesia and the Phillipine, with more than 23,0000 distribution points. Growth? Is there a growth company? The answer is Most Probably!
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....
abcb
3,115 posts
Posted by abcb > 2014-11-21 16:03 | Report Abuse
Base on its total sales of RM1.33 billion last year,this could means sales upwards of RM260 million from its mobility segments in FY14,base-of-the-envelope calculations show