InvestIdeas

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

not vested

Trading Buy: SCICOM - 0099
(Last price: RM0.730, Potential upside +37.0%)


Company Profile

The Group is also involved in the provision of management and technical services relating to waste management; and the provision of contracting, project and management services relating to construction contracts.


Trading Catalyst

Despite Covid-19 situation, SCICOM has maintained its business activities, providing support to its clients as the team in Malaysia and Sri Lanka could work from home to serve its customers throughout this crisis.

Also, we believe the selling is overdone and may warrant a decent recovery, supported by its dividend yield of more than 5%.

Technical View
Resistance: RM0.780 / RM0.810 / RM1.00
Support: RM0.720 / RM0.690
Cut loss: RM0.680

Key Financial Stats
Consensus DY: 9.0%

Source: HLIB