Profile

• Listed on 29 Jan 2004

• A component of the FBM ACE Index under the Computer Processing Hardware industry

• Market Capitalisation of RM 90.86 million

Background and Core Business

• IT solution provider for the financial services industry

• Design, development and maintenance of Efficient Service Machines (ESM) i.e. Cash Recycling Machines (CRM), Cheque-deposit machines and image-based cheque processing systems

• Business Process Outsourcing (BPO) for deposit, payment and reloads in the Insurance, Utilities, Telcos and Government sectors

Financial Brief and Ratios (Historical)

• Opensys (0040.KL)	FY 2015 (RM’000)
  Revenue (RM’000)	72,506
  Net Earnings (RM’000)	7,761
  Net Profit Margin (%)	10.704
  EPS	0.026
  PE Ratio (PER)	13.60
  Dividend Yield (%)	3.28
  ROE	17.247
  Cash Ratio	0.331
  Current Ratio	2.722
  Debt to Equity Ratio	0.200

• Revenue has experienced a y-o-y growth of +60.05% with net earnings growth of +38.64%

• EPS is still growing but has slowed to +3.98%

• PER is relatively moderate for this business segment

• Dividend Yield is fairly attractive at 3.28%

• Debt to Equity ratio shows acceptable gearing

iVolume Spread Analysis (iVSA) & comments based on iVSAChart software – Opensys (0040.KL)

• Based on the 1-year weekly chart, Opensys has been moving sideways in a trading range between RM0.24 and RM0.34

• Signs of Weakness (red arrows) start appearing as the stock reaches the price level of RM0.32 to RM0.34, indicating overhead supply/resistance

• Conversely iVSAChart has detected Signs of Strength (green arrows) first seen at the RM0.24 and then RM0.28 levels suggestive of buying interests

• Volume traded beginning 2016 has been low which is characteristic of an Accumulation stage

• For an uptrend to commence we need to see a change of behavior by having the stock price close strongly above the resistance level with bullish volume

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This article only serves as reference information and does not constitute a buy or sell call. Make your own assessment before deciding to buy or sell any stock.