“After hitting double bottoms at RM0.36 on Dec 10 and 18, Binacom is on the verge of a downtrend resistance breakout near RM0.40.
“A decisive breakout above RM0.40 is likely to lift share prices higher towards RM0.41 and RM0.46 before reaching our long-term objective at RM0.49. On the flip side, key supports are situated at RM0.37 and RM0.36. Cut loss at RM0.34,” HLIB Retail Research stated.
Binacom is a telecommunications support services provider, and has mainly involved in three servicing business segments, namely satellite network, mobile network and fibre optic network.
With about 15 years of experience in the sector, Binacom has become a strong telecommunications network-supporting services partner mainly to Maxis Bhd, U Mobile Sdn Bhd and Huawei Technologies Co Ltd.
Currently, the group is one of the few players in Malaysia that provide support services across three main telecommunications mediums, mitigating the risk of over-dependence on any segment.
On re-rating catalysts, HLIB Retail Research added that Binacom is a potential beneficiary of outsourcing trends, spectrum reallocation exercise, the National Fiberisation and Connectivity Plan (NFCP) and changing technological trends (from 4G to 5G deployment in the long term), led by the mobile and fibre optic segments.
Binacom is a telecommunications support services provider, and has mainly involved in three servicing business segments, namely satellite network, mobile network and fibre optic network. .
-------------------------
On Risk Mitigation and Disaster Recovery Capability, this co is the winner coz it has experience on all three sectors....
OPCOM Holdings Bhd is not a contractor in the project bid under the National Fiberisation and Connectivity Plan (NFCP) as it is not licensed under the Communications and Multimedia Act 1998. Communications and Multimedia Minister Gobind Singh Deo (picture) said the claim that Opcom is the successful contractor in the NFCP bid through the Malaysian Communications and Multimedia Commission (MCMC) is false and baseless. “The question of how much of the contract value obtained by them through MCMC does not arise at all because Opcom is not a licensee under the Communications and Multimedia Act 1998. MCMC cannot appoint them for any initiative to be funded through the Universal Service Provision Fund (USP Fund),” he said in the Dewan Rakyat yesterday. --------------------------------------------------------
In my view, RedTone is no doubt making a huge comeback to a profitable company. It has a majority share holder, a conglomerate public figure... No doubt it can deliver the NFCP project. But to be the main contractor, the succesful company should exhibit that the profit returns back to the majority of the people including Bumiputra. A co with one or two major share holder could make gains via open business and monopoly, should not via award like this scenario, otherwise it could be politicised by many factions.. The endgame could be BINACOM awarded, and REDTONE become co player or awarded a specialised sub aspect of the whole project..
Company from Sawarak or Sabah if any would be given higher priority for award with condition is that the capability of know how is already acquired. This is the in-good-faith practice in the past for East Malaysia to be part of Malaysia.
Company from Sawarak or Sabah if any would be given higher priority for award for works in East Malaysia... If they not really have the technical khow how, a JV could be formed.
“We need to expand our three business segments, which are the satellite, mobile and fibre optic first, and then increase our value by having our infrastructure such as the teleport.
“With that, we then can expand our customer base, and services that we currently offer to existing customers,” Zulamran added.
Binasat plans to build a teleport in the Klang Valley within the next two years, and increase its O&M efficiency level by employing more technical personnel and by increasing number of resources, facility and vehicles for service support.
As at October 2017, its market share for the maintenance of satellite ground stations at petrol stations in Malaysia was estimated at 57%.
In 2016, the group had an estimated 64% market share for all satellite ground stations in Malaysia.
Malaysia remains its principal market, accounting for 98.7% of the RM54.5 million total revenue for the financial year ended June 30, 2017 (FY17).
Of the company’s clients, 53.1% are telcos, 32.5% are equipment suppliers, and 4.4% are turf club operators.
Maxis Bhd and Huawei Technologies Co Ltd are two major customers which contributed 49.5% and 26.3% respectively to the group’s revenue in FY17.
The group registered a pretax profit of RM2.2 million for the 1Q ended Sept 30, 2017.
Meanwhile, Rakuten Trade Sdn Bhd has recommended a ‘Buy’ on Binasat’s stock, with a target price of 65 sen based on 13 times per FY19, as per the FTSE Bursa Malaysia KLCI Small Cap Index.
“Binasat’s gearing would reduce to 0.14 times from 0.34 times post-listing.
Revenue has been growing steadily for the past four years, at annual rate of 19.7% and is anticipated to remain robust with double-digit growth and earnings per share growth of 12.8% in FY18 and 13.6% for FY19,” Rakuten Trade head of research Kenny Yee said in a statement.
Carimin and UZMA are only at the mercy of Petronas and its peers. This BINACOM is about to transform our country with 5G and all. I expect capital increase of 5 folds that is equiv of RM1.50/share only.
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