Scomi Engineering is one of the leading monorail providers in the world. And in this world, there are only a handful of companies that have monorail technology as the technology poses an extremely high barrier of entry for new companies to enter the industry.

At current price, it is deeply undervalued due to following reasons:

a) Net Tangible Asset of 79 cents as compared to current price 38 cents. Pay a ringgit and get double ringgit

b) It is in a turnaround process with expectation of posting profits for the coming financial quarters.Scomies is a prime example of the capability of the Scomi brand to turnaround. Scomies has turnaround to become a multi million dollar profit company today. This makes the turnaround for Scomien all the more convincing. Need numbers? Moving from 1 financial quarter to the next for Scomien, it can be seen to be gradually going into the black. 

c) orderbook of RM1.4 billion and will continue to increase as the company is actively tendering for monorail projects in a number of countries. Assuming 10% profit, the earnings would be RM140 million. Imagine the P/E involved

d) monorail technology is highly sought after in the world today and for the next decade. Google it. Market potential for monorail would run into tens of billions in the future. Scomi Engineering is a major player in monorail today (it is in fact one of major 3 monorail companies) and very much poised to capture a significant pie of the market. Assuming all things equal, divide the market by 3 and you get an idea of future market prospect.

e) stringent cost control commitment by the company and improved funding strategies to ensure coming project executions will be profitable.

f) the scomi brand as a monorail provider is very visible today. scomi in india, brazil is synonymous with monorail. Last 2 monorail contract to come out from Brazil was won by Scomi. It is worth noting that the company has done a great deal to liase and follow up with key decision makers of monorail contracts . This will definitely give it a competitive advantage in terms of understanding the subtle requirements and needs of a certain country to build monorail, making it able to tailor its bids better for monorail contracts. This translates to better contract success rates.

g) the company is evolving to become a comprehensive transport solution provider apart from its core monorail technology. this means more business opportunities for the company as well.

The market for monorail is there and it is unbelievably huge. The ability to win contracts for the company is already a well established fact. It does not rely on undertable connections, but on its very own capability. Is it the coming of a giant? Time will tell. 

The above are general ideas of the locked values within the company. Research them for yourself and make your own conclusion if it is a company with tremendous potential that reaches the sky.