not vested
Trading Buy: SCOMNET - 0001
(Last price: RM0.415, Potential upside +36.1%)
Company Profile
• Supercomnet Technologies Berhad (SCOMNET) is involved in the manufacture of PVC compound and cables/wires for electronic devices and data control switches.
Trading Catalyst
• SCOMNET registered an increase of 13.2% and 13.0% in revenue and net earnings in FY17, respectively, on the back of higher demand for wire and cables in the passenger cars segments.
• SCOMNET has purchased into the remaining 80% stake in its subsidiary Supercomal Medical Products Sdn Bhd (SMP) in October 2017. Hence, we should be able to see expansion in their FY18 results.
• Copper (main raw material) prices on the London Metal Exchange has been losing steam, declining from the peak of USD7,348 to USD6,228 over the past two months.
Technical View
• Resistance: RM0.435 / RM0.460 / RM0.565
• Support: RM0.400 / RM0.385
• Cut loss: RM0.370
Key Financial Stats
• FY17 revenue and net profit growth: 13.2% and 13.0%.
Source: Bloomberg, HLIB