BINACOM (0195) - Prime beneficiary of network infrastructure in East Malaysia, general election play Author: sectionanalyst | Publish date: Fri, 12 Jan 2018, 11:10 AM
We retain our add rating on BINACOM with a higher target price of RM1.35 (135% upside based on 11/01/2018 closing price of RM0.57). We believe the Group offers significant value upside from its recently secured network service provider and network facilities provider license tfrom MCMC. We believe the timing of the Group's listing on the local bourse to be a general election play, particularly with the strong ties of the Group's non-executive directors with the current ruling coalition party.
We believe the Group's non-recurrent income to grow c.20% and new tower business segment from rolling contracts to contribute significantly and 200% respectively in FY18 and FY19.
We believe the Group is too good to ignore and believe it will be re-rated based on a multi year basis.
Following the public issue and use of proceeds, Binasat will have total assets of RM80.14mil. Net assets per share and gearing will stand at 23.75 sen and 0.14 times respectively.
Binacom is a good company has a strong business model and earn recurring income is the ideal kind of company you should not be ignored. In future prospect,this company cam make good return on equity with little debt and generate strong cash flow that allow the management to return excess money to shareholders as dividend
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....
faizkl
268 posts
Posted by faizkl > 2018-01-11 11:14 | Report Abuse
This counter is shit counter, cut loss already.. Betui2 sui ini BINACOM..