Good morning.

Today, we feature a note on Supercomnet Technologies Berhad in our FundTech Radar – 24th July 2018. It is a manufacturer of polyvinyl chloride (PVC) Compound and cables/wires for electronic devices and data control switches listed on the ACE market. Its exports constituted approximately 7.8% of its total revenue. 

Fundamental Stance
• A stable 3-year (FYE15-17) revenues and core PATAMI CAGR of 0.9% and 49.4% respectively.
• A benign core PATAMI margin of about 7.9% on 3-year historical average.
• Net cash position of RM13m (2 sen per share) as at 31 Mar 2018.
• After the capacity enhancement in 2017, it will continue to invest and upgrade additional production  capacity.
• Currently trading at an extremely high 12-month trailing P/E of 112.3x (107.4x if excludes 2 sen net cash per share).

Technical Front
Triangle breakout could potentially extend its accelerated upward channel. 
Resistances: 0.57/0.66/0.75
Supports: 0.37/0.34/0.28

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.


24th Jul 2018
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