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NewsAffinHwang Capital starts coverage on Scicom, target price RM2.56
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AffinHwang Capital starts coverage on Scicom, target price RM2.56
by Cals Tue 07 Oct 2014, 23:31
AffinHwang Capital starts coverage on Scicom, target price RM2.56
Business & Markets 2014
Written by theedgemalaysia.com
Tuesday, 07 October 2014 08:38
KUALA LUMPUR (Oct 7): AffinHwang Capital has initiated coverage on Scicom Bhd with a Buy rating at RM1.91 and a target price of RM2.56 and said that with 47% of earnings expected from processing of foreign student visas by FY17, Scicom should rapidly morph into a significant e-government service player from merely being a Business Process Outsourcing (BPO) operator.
In a note Tuesday, the research house said that being the sole agent to the Ministry of Education in the processing of foreign student visas, Scicom was set to benefit from the arrival of foreign students into the country as Malaysia promotes itself as an education hub in the region.
“As such, this e-government service is expected to propel Scicom’s 3-year EPS CAGR of 28%.
“Given its exciting growth prospects and strong stable recurring income, we value Scicom at RM2.56 based on 20x CY15E EPS at a 17% valuation discount to its e-government service peer.
“With an upside potential of 34%, we initiate coverage with a Buy,” it said.
Business & Markets 2014
Written by theedgemalaysia.com
Tuesday, 07 October 2014 08:38
KUALA LUMPUR (Oct 7): AffinHwang Capital has initiated coverage on Scicom Bhd with a Buy rating at RM1.91 and a target price of RM2.56 and said that with 47% of earnings expected from processing of foreign student visas by FY17, Scicom should rapidly morph into a significant e-government service player from merely being a Business Process Outsourcing (BPO) operator.
In a note Tuesday, the research house said that being the sole agent to the Ministry of Education in the processing of foreign student visas, Scicom was set to benefit from the arrival of foreign students into the country as Malaysia promotes itself as an education hub in the region.
“As such, this e-government service is expected to propel Scicom’s 3-year EPS CAGR of 28%.
“Given its exciting growth prospects and strong stable recurring income, we value Scicom at RM2.56 based on 20x CY15E EPS at a 17% valuation discount to its e-government service peer.
“With an upside potential of 34%, we initiate coverage with a Buy,” it said.
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