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Censof Holdings - Awarded PTPTN Project

kiasutrader
Publish date: Wed, 13 Feb 2013, 10:25 AM

News    CENSOF has been awarded a new project by Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) for the upgrading of the latter's financial management system worth RM1.7m over a 2-year period commencing from 5 February 2013 until 4 February 2015.

Comments   According to management, the project is an asset management solution for PTPTN with an estimated gross margin of 40%, implying contributions of a minimum RM310k and RM340k in gross profit a year to FY13 and FY14 respectively.

 We believe the contract of RM1.7m (the only one thus far in FY13) is considered a minor contract and it fell within our assumption of a total RM13.2m worth of contracts expected to be awarded to the company in 1Q13.

 We are, nonetheless, positive on the announcement as CENSOF has now expanded its clientele base to another government agency (i.e. PTPTN) from its existing clients namely PERKESO, MoF, KWAP and LHDN.

Outlook   Remains bright, underpinned by continued projects/contracts flow from the various government agencies.

Forecast   No changes to our FY12E-13E earnings.

Rating    MAINTAIN OUTPERFORM

Valuation    Maintaining our TP of RM0.59 based on a Fwd.
PER of 12.2x on our FY13E EPS of 4.8 sen.

Risks   Failure to secure more projects
 Reduced government spending on ICT e.g.  on upgrade of online payment systems, etc.

Source: Kenanga
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