• TCS Group’s established track record positioned the group as one of the notable players in the local building construction industry, backed by outstanding orderbook of RM463.8m to sustain earnings till FY23.

• We project earnings to grow to at 3Y CAGR of 1.3% to RM16.1m in FY21 (after a 39.5% YoY decline to RM9.5m in FY20) underpinned by resumption of works orders, coupled with the recovery in the construction sector.

• TCS Group is valued by pegging its FY21f core EPS of 4.5 sen to 6.5x PE (approximately 20% discount to peers average of 8.0x), leading to a FV of RM0.29.

Company Background

• TCS Group Bhd’s (TCS Group) history traces back to 1998, principally involved in the construction of building and civil works. TCS Group has successfully completed several projects ranging from terrace houses, shop offices, medium rise buildings and infrastructure works such as water pipelines, service reservoirs, sewerage treatment plants, commercial and institutional buildings. As a building contractor specialist, TCS Group plays a key role in coordinating building construction projects in planning and managing the overall construction projects and ensuring successful handover in a stipulated time frame.

Source: Mplus Research - 6 Jul 2020