Supercomnet Tech (SCOMNET)

Supercomnet Tech (SCOMNET)

Postby winston » Fri Jul 13, 2018 8:59 am

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
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Re: Supercomnet Technologies Berhad (SCOMNET)

Postby winston » Tue Apr 09, 2019 9:23 am

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Trading Buy: SCOMNET - 0001
(Last price: RM0.780, Potential upside +17.9%)


Company Profile

Supercomnet Technologies Bhd involved in manufacturing, assembling and selling cable and wires for various industries such as automotive, home appliances, medical device industry and others. Also, the subsidiary Supercomal Medical Products Sdn Bhd (SMP), sells medical cables (approved by FDA in US) and disposable pressure transducers (DPT).


Trading Catalyst

Following the acquisition in Apr-2018, it has registered revenue and net profit of RM88.3m (+156%) and RM12.2m (+370% YoY) as SMP has contributed revenue of RM45m and net profit of RM11.8m in 2018 and it is likely to maintain its earnings momentum throughout FY19 with the full year contribution.

As technology is advancing amongst the automotive, technology, telecommunications and medical sectors, we believe the demand for wires and cables are likely to sustain in the future, providing potential upside towards SCOMNET’s earnings.

To recap on Budget 2019, the government has allocated around RM29m in to Ministry of Health, which may boost the health services provided at clinics and hospital, leading to potential demand for medical devices.

Based on FY18 financial statement, SCOMNET is currently zero debt with a net cash of RM39.5m, translating to 6 sen per share.

Technical View
Resistance: RM0.840 / RM0.870 / RM0.920
Support: RM0.760 / RM0.750
Cut loss: RM0.745

Key Financial Stats
Net cash: 6 sen per share

Source: Bloomberg, 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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Supercomnet Technologies Bhd (Scomnet)

Postby winston » Sun Jan 05, 2020 1:55 pm

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Stock picks: Supercomnet Technologies Bhd (Scomnet)
Price: 74 sen

Few are aware that Malaysia is the world’s leading producer and exporter of medical devices such as catheters and supplies 80% of global demand.

One example of a listed Malaysian medical device company is Scomnet, which has been quietly delivering stellar results over the last eight quarters.

More importantly, Scomnet counts blue chip companies such as New York listed Edward Lifesciences Corp, and Denmark listed Ambu AS as its major clients.

Scomnet has served both these companies for more than ten years, with the orders rising over the last few years.

Earnings visibility has been clear, and management has so far delivered on its guidance.

Scomnet supplies catheters, cannulas and urine bags for its medical devices division.

For the next three years, Scomnet’s earnings are set to rise, as orders from both these companies further increase.

Scomnet’s fortunes only changed after it acquired the remainder 80% of its medical subsidiary, Supercomal Medical Products Sdn Bhd in early 2018.

Prior to that, its earnings were volatile as it was predominantly involved in the manufacturing of PVC compound and cables and wires for electronic devices and data control switches.

For the most part of 2019, the stock has rested despite strong earnings momentum. As the company continues to deliver strong results, it will be a matter of time before investors perk up and recognize this as the next growth stock.

Earnings-wise, Scomnet has delivered a 40.5% increase in net profit to RM14.3mil for its nine months to Sep 30,2019. Revenue increased 48% to RM90.57mil.

The catalysts going forward would be a potential dividend, and more stellar earnings in the next few quarters.

Source: Rakuten
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Scomnet

Postby winston » Tue Dec 08, 2020 8:34 am

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Scomnet — Robust earnings growth in medical cables

Target price: RM2.68

Medical cables to see robust earnings growth on the back of improved demand amidst the Covid-19 pandemic

Embarking on a multi-year expansion to double production capacity for cables approved by Food & Drug Administration (FDA) and European Medical Agency (EMA)

Major key clients, namely US-based Edward Lifesciences, Denmark-based Ambu and Mermaid Medical, are major global cardiovascular medical devices companies

Expected to deliver its strongest-ever performance on record with supercharged growth in earnings per share in FY20 (up 59%) and FY21 (up 68.3%)

Balance sheet remains healthy with cash pile growing to RM30.8m, and zero borrowings

Source: the Edge
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Re: Supercomnet Tech (SCOMNET)

Postby winston » Fri Sep 03, 2021 10:48 am

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Supercomnet Technologie – BUY

Maintain BUY and target price of RM2.15, which implies 32x 2022F PE, its 5-year mean and at a discount to Bursa Malaysia's Healthcare Index of 44x.

We also assume a full conversion of existing warrants into our valuations, factoring in share base of 857.3m shares and theoretical cash increment of RM75m.

Scomnet is poised to ride on the impending acceleration of healthcare equipment demand in the US and Europe which is supported by positive long-term drivers of a developing but ageing countries.

Previous margins compression issues on rising raw material and freight cost have been
resolved and passed on to customers since 2Q21. Workforce capacity restriction issues due to MCO have also been resolved as Scomnet has received approval to operate at 100% workforce capacity since September.

We are expecting a better recovery pace for Scomnet in 2H21, underpinned by commercial production of several new products in its pipeline. Scomnet has also secured a new US customer which can potentially contribute to earnings from 4Q21 onwards.

Share Price Catalyst

Capacity expansion, with its second floor capacity increased by 10-12.5%/360 sqm recently in Feb-21.

This will be followed by the further expansion of the second floor which will be completed in Jan 22 and boost production capacity by another 15-20%.

Furthermore, there is a new building which could raise capacity by 80% upon completion in 1-1.5 years’ time.

Securing new clients and incremental revenue for new medical products (D'Clot Catheter Colonoscopy GI and Gastroscopy GI) which will begin mass production from 4Q21 onwards.

Switzerland-based new client- Plass receiving FDA approval for its blood clotting device by 4Q21, which will boost Scomnet's earnings.

Its imminent mainboard listing, which is targeted to be completed in 2H22, could also
catalyse a potential valuation re-rating.

Source: UOBKH
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Re: Supercomnet Tech (SCOMNET)

Postby winston » Tue May 30, 2023 8:52 am

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Supercomnet Technologies Berhad (0001)
Target Price: RM1.86 (Buy)


1Q23 within expectations.

QoQ, PBT improved to RM9.0mn as compared to RM7.6mn in 4Q22 due to higher sales of higher profit margin products from the medical segment.

Our FY23/24/25 earnings estimates are adjusted lower by 2.8/0.6/0.9% after imputing FY22 numbers into our model.

Maintain Buy at RM1.86/share.

Source: TA Research

https://taresearch.taonline.com.my/rrs/ ... 230530.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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