OVERVIEW:
Headquartered in Malaysia, the counter is a provider of digital economy solutions and services for major organizations in Banking, Insurance, Payment, Retail & Logistics industries. Over 40% of the top 20 largest banks in South-East Asia running it's core banking solution. Today it has become core system partner of choice for 3 of the 5 largest ASEAN super regional financial institutions.
HIGHLIGHTS:
[1] Last quarter saw gross profit down 24% year on year, due to slowdown of customers' capital expenditures and the completion of higher value contracts on same quarter last year. However, maintenance and enhancement saw improvement of 21% year on year. This segment contributes > 50% of total revenue.
[2] Management indicated that contracts secured in early of 2017 shall start contribution from coming quarter onward.
[3] It has negligible debt gearing. Net cash inflow at RM271m for 9M2017.
INVESTMENT THEMES:
[1] 9M2017 Earning per shares - RM0.307 || Dividend > 0.028
Last trading price, 0.595 translates to dividend yield ~ 4.7%
[2] 9M2017 registered gain of RM477m from shares disposal in its associates. Entitlement for relevant special interim dividend at 0.013 per share will expire on coming Monday (10 July). Hunting opportunity might appear.
[3] It has won a series of new projects recently, including banking customer in Thailand. New projects revenue shall improve on coming quarters.
PRICE TREND:
Price is edging towards resistance ~ 0.6, with immediate support ~ 0.58. Shall it break through, next resistance shall be ~ 0.62/0.64
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