Postby winston » Mon Apr 15, 2019 10:07 am

not vested

Trading Buy: BINACOM - 0195
(Last price: RM0.385, Potential upside +26.0%)

Company Profile

Binacom (listed in Jan 2018 at IPO price RM0.46) is a telecommunication support services specialist with a proven track record (about 15 years) in supporting services across satellite, mobile and fibre optics networks. With the group’s edge of having diverse capabilities, it has become a strong telecommunication networks supporting services partner mainly to MAXIS, U Mobile and HUAWEI.

Trading Catalyst

We view Binacom as a potential beneficiary of outsourcing trends, spectrum reallocation exercise, implementation of the National Fibre Optic and Connectivity plan and changing technological trends (from 4G to 5G deployment in the long term).

Outlook remains positive following the construction of the new teleport facility and the purchase of high-definition Digital Satellite News Gathering (DSNG) system to provide new services to customers.

Valuation is undemanding at 10.5x trailing PE (44% below peers); Binacom is a cheaper proxy for investors seeking exposure to the telecommunications support sector.

Technically, a decisive breakout above downtrend line near RM0.40 will spur prices higher to RM0.46-0.485 levels.

Technical View
Resistance: RM0.410 / RM0.460 / RM0.485
Support: RM0.370 / RM0.360
Cut loss: RM0.340

Key Financial Stats
Trading at 10.5x trailing P/E (44% lower than its peers) and 16% below its IPO price of 46sen.

Source: HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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