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sectionanalyst

Author: sectionanalyst   |   Latest post: Fri, 13 Oct 2017, 01:49 PM

 

KRONO - Upgrade to BUY with TP RM1.83

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KRONO - Upgrade to BUY with target price of RM1.83

We recently met with channel check and came away positively surprised by the developments surrounding the company.

The company had been on positive acquisition spree, with the latest being the acqusition of remaining interest in Quantum Storage India (QSI).

Based on channel check, the company is forecasted to report Q3 revenue and earnings in the range of RM65 million and RM6.8mil, respectively.

We affirm our upgraded ADD rating owing to the positive developments:

1. Positive earnings momentum going into Q3'17 and Q4'17

2. Synergies with Singapore Technology Engineering on Hong Kong data storage acquisition to increase the company's margin and reputation in big data cities in Asia (Hong Kong and Singapore).

3. Based on channel check, the company is finalizing another earnings accretive deal with a large data protection company to provide secured storage cloud platform services to a host of clients.

4. Potential beneficiary of pioneer status tax incentives in Budget 2018 for big data, cloud, artificial intelligence companies. Note that the higher earnings from lower tax has not been factored into our TP.

5. Technical breakout chart above RM1 signalling strong buying momentum with upsides of RM1.15, followed by RM1.30.

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Labels: KRONO

Related Stocks

Chart Stock Name Last Change Volume 
KRONO 1.08 -0.03 (2.70%) 5,038,400 

  4 people like this.
 
tecpower bullshit
13/10/2017 17:54
tecpower EDM

Too many competitors...
13/10/2017 18:00
dusti Virgin snake oil
14/10/2017 11:45
michaelwong Insane predictions ...Lol!!!
15/10/2017 21:21
nekosan another jhm. mark my words
15/10/2017 21:51
goldenluck16 Slow and steady...always on the way up
15/10/2017 22:09
goldenluck16 I started buying this stock when it was only 18 seen.
15/10/2017 22:11
goldenluck16 **sen
15/10/2017 22:11
godhand 1 red qr will send this stock all the way to the core of the earth. U know qr can fuck up everything. This stock is very very overvalue
15/10/2017 22:12


 

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