Supercomnet Technologies To Ride On The Demand From Automotive And Healthcare Sector

Malacca Securities has made a “Buy” call For Supercomnet Technologies Bhd with a fair value of RM1.51 based on a target t P/E multiple of 38.0x (which is in line with the 5-year historical average) to FY23f diluted EPS of 4.0 sen.

It said that SCOMNET is embarking on a relatively large-scale expansion over the next 3 years that boost built-up area to more than 30,000 sqm upon completion.

“We are sanguine on the expansion, given that the group is already operating at near full capacity, while the incoming new supply will be absorbed by the robust demand from the ever-evolving technologies within the automotive and healthcare sector,” Malacca Securities said

On its Healthcare and automotive to drive growth, the stockbroking firm said that it gathers that SCOMNET is also undertaking multiple launches of new products within the healthcare equipment and automotive sector in a bid to match the growing demand. “Therefore, SCOMNET is well-positioned to leverage on the rising healthcare awareness and technological advancement in the automotive space,” Malacca Securities said.

The stockbroking firm said that in recognition of its strong financial track record, SCOMNET is in the process of transferring its listing status to the Main Market of Bursa Malaysia.

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