Hot Stock Digistar active ahead of CMS system launch

by **Cals** Fri 27 Sep 2013, 15:23

Hot Stock Digistar active ahead of CMS system launch

Business & Markets 2013

Written by Jeffrey Tan of theedgemalaysia.com

Friday, 27 September 2013 12:50

KUALA LUMPUR (Sept 27): DIGISTAR CORPORATION BHD [] saw its shares rise as much as 1.6% to 32.5 sen in early trades after it previewed its security monitoring system that could generate stable recurring income.

But profit-taking set in later and the stock declined towards noon.

At 12.18 pm, Digistar fell 3 sen or 9.4% to 29 sen, with some 32.7 million shares exchanging hands. It was the eighth most actively traded counter.

Yesterday, the company held a press conference to introduce the system and said it would be launched next month. It expects to get 500,000 customers within the five years due to public concerns over security.

CIMB Investment Bank Research noted that group CEO Datuk Wira Lee Wah Chong has stated that this new business will generate a consistent recurring revenue for the group from FY2014 onwards.

It said Digistar had invested RM5 million over the past two years to develop the system, named Panther 911.

“According to a media report, Digistar will launch the product and service end of October, and will be offered to residential, commercial, industrial and public PROPERTIES [],” said CIMB IB Research.

The research house said the RM5 million investment included the setting up four central monitoring system (CMS) command centres in Kuala Lumpur, Penang, Malacca and Johor.

“Digistar’s CMS includes monitoring services via a comprehensive internet protocol-based platform and hi-tech surveillance system,” noted CIMB IB Research.