Good morning.

Today, we feature a note on Kronologi Asia Berhad in our FundTech Radar – 17th July 2018. Kronologi Asia Berhad (Krono) is a regional enterprise data management (EDM) solution provider listed on the ACE market. Its exports constituted approximately 98.2% of its total revenue. 

Fundamental Stance
• A strong 3-year (FYE15-17) revenues and core PATAMI CAGR of 38.2% and 25.9% respectively.
• A benign core PATAMI margin of about 8% on 4-year historical average.
• Net cash position of RM7.1m (2 sen per share) as at 31 Mar 2018.
• Krono is currently focusing on smart city surveillance as well as media and entertainment industry.
• Krono may expect to see a double-digit growth in FY18 as the recent acquisition of QHK could potentially start making a full-year contribution.
• Krono is a net beneficiary of a strong US Dollar.
• To capture the growing demand for hybrid cloud storage and other data management applications, Krono plans to expand into other countries in the next 1 to 2 years.
• Currently trading at 18.4x 12-month trailing P/E, a 46.5% premium to its 3-year historical average P/E of 12.6x.

Technical Front
Sideways consolidation phase. 
Resistances: 0.70/1.00/1.28
Supports: 0.48/0.43/0.36

The above information is extracted from CIMB Research Report. For the full research reports, outlook and disclaimers, please logon to your account on www.itradecimb.com.my and click on <Research> Tab under Malaysia.

This FundTech Radar report is intended for educational purposes only. It represents a preliminary assessment of the subject company, and does not represent initiation into CIMB's coverage universe. It does not carry investment ratings and CIMB does not commit to regular updates on an ongoing basis.


17th Jul 2018
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