not vested
Trading Buy: SCICOM - 0099
(Last price: RM2.02, Potential upside +23.8%)
Company Profile
• Scicom (MSC) Berhad is engaged business process outsourcing (BPO), which features four core segments, namely (i) Customer Lifecycle Management, (ii) Education solutions, (iii) e-Commerce Solutions and (iv) e-Government services.
Trading Catalyst
• SCICOM could be riding on the healthy tourist growth (11.8% in 2017) in Cambodia, following the award of contract from Ministry of Tourism of Cambodia.
• SCICOM has a net cash of RM45.8m (12.9 sen/share) as of end March 2018 and its dividend yield stood at 4.5%.
• It has experienced a symmetrical triangle breakout above RM2.00, accompanied by healthy volumes.
Technical View
• Resistance: RM2.29 / RM2.40 / RM2.50
• Support: RM1.90 / RM1.84
• Cut loss: RM1.80
Key Financial Stats
• FY17 DY: 4.5%
• Net cash: 12.9sen/share (as of Mar 2018)
• ROE: 34%
Source: Bloomberg, HLIB