Good pick at 1.05
DY 7.62%

AI is becoming a valuable tool for BPO companies. BPO companies can significantly reduce repetitive tasks using robotic process automation (RPA) and AI. By improving productivity and efficiency. BPOs will become even more effective investments. Integrating AI and RPA is the most anticipated emerging trend in business process outsourcing industry.

Scicom Berhad (0099) operates in the thriving sector of Business Process Outsourcing, catering to a diverse clientele of over 50 prominent companies including Petronas, Lenovo, Oppo, Digi, and many more, showcasing a robust and diversified revenue stream. Its notable partnerships with industry leaders such as Petronas, Lenovo, and Digi underscore its credibility and reliability.

Notably, Scicom plays a pivotal role in facilitating e-government services, including handling the EMGS in Malaysia for processing Foreign Student VISAs and e-government services in Cambodia, positioning itself as a key player in driving digital transformation in the region.

With a clean balance sheet boasting zero debt and a history of prudent financial management, Scicom has demonstrated resilience and stability. Since its listing in 2005, it has rewarded shareholders with three bonus issuances and maintained a consistent track record of quarterly dividend payments, reflecting its commitment to shareholder value.

Furthermore, Scicom's robust financial performance is underscored by its high Return on Equity (ROE) and Return on Assets (ROA), indicating efficient utilization of resources and profitability.

With a current price of 1.08 and a dividend yield of 7.43%, Scicom presents an attractive investment opportunity, coupled with its solid fundamentals, established market presence, and potential for further growth. Additionally, its sizable workforce of around 3900 employees reflects its capability to manage and scale operations effectively.

In summary, Scicom Berhad stands as a compelling investment proposition in the Business Process Outsourcing sector, driven by its strong client base, prudent financial management, and commitment to shareholder value, poised for continued growth and value creation in the foreseeable future.

Spike up soon Scicom!!!!

@goreng pisang you mean Nvidia will buy over Scicom?

Anything is possible. They can support their data centre...

See you all at AGM this morning.

https://whytoocare-y2k.blogspot.com/2023/09/jun-2023redtone-scicom.html

RM3 is not an issue with new e govt kick in. Kenanga research house said Fair Price RM1.70 as per their August report.

Page 15. Robust e govt pipeline in hand. Hope to be announced soon. Currently still work in progresss.

As far I heard in progress right now. It is e govt..

@goreng pisang. Retained profit of Scicom closes to 90mil

https://www.klsescreener.com/v2/news/view/1186407

due to its remarkable performance. Scicom is in the listing among 9 firms.

Forbes Asia names 9 Malaysian firms in Best Under A Billion 2023







Malaysian firms in Best Under A Billion 2023

@fennix you may type Zanzibar Scicom in google. Initiative stages just begin for yheir e govt platform. no idea why Bursa not yet announce

happy to knows that Scicom declared 8cts in total within a year equalvalent to DY6.90%

today Pick some at 1.14 to keep for my retirement

yes e govt

great milestone for Scicom in digitalise e govt in Africa. well done !!

*Scicom (MSC) Berhad (SCIC MK)*
*BUY (maintain) Price Target: RM1.43*
*Up/Downside: 17.2% Previous Target (Rating): RM1.33 (BUY)*
*Earnings are sequentially weaker, but within expectations*
➢ Scicom’s 9MFY23 core net profit grew by 8% yoy to RM24.7m on the back
of higher contribution from the e-services segment. The results were within
market and our expectations
➢ 3QFY23 core net profit fell by 22% qoq to RM7.2m due to lower revenue
from both the BPO and e-services segments). Nonetheless, management
has maintained an interim dividend of 2 sen for 3QFY23, bringing its
9MFY23 DPS to 6 sen (9MFY22: 5.0 sen)
➢ Maintain BUY with higher TP of RM1.43 (from RM1.33) on rolling forward
our valuation base to 2024. We continue to like Scicom for its high ROE
business model that focuses on digital solutions and e-services, attractive
valuation of 12x CY24E PER and CY24E dividend yield of 6.7%

Details:
https://researchnews.affinhwang.com/Research/DailyReports/20230530/Affin%20Hwang%2020230530%20SCIC%20RN.pdf

tonight result out

cash in bank 1.43bil from 1.29bil. NTA @1.34 with current price only 15cts?

launched Medical Techology

Scicom launched Chatgpt. Recently secured Starhub too.

weichong you mean they secured Singapore Telco project?

agreed. healthy momentum right now. maybe they secured new,projects again.

thanks a lot. Double yield than my rental . rental I still need to worry about tenant.

sure. will buy in today

thanks Wei Chong. if 8 cts means 13.5 year can recoup the investment cost. l looks

I like their business model wei chong.

Scicom

hi

TP 2.56

Price we really can't control but their billable headcount is increasing. It is good for BPO.

Break above 4000 staff .

Ya Lily. Most important they are working hard in securing new business. Zero debt and now moment to play safe is a key rather investing in high debt co.

@weesiong91 少一点看她就上了 :)现在整体市场都不好。这几股是拿来投资的。目光知视是无法在这几股获胜。

I didnt say this Weesiong. Please read again my statement.

@weesiong 92 . High court already struck out the case but EMGS brought it to court of appeal again. Hearing will be in August. My personal opinion of EMGS want to cancel or cease the agreement. They need to compensate to Scicom as well. Let the court decide. This thing beyond our control.
Furthermore Scicom already serves them since 2013. And you suddenly said data not comply with sensitive act and also wanted them to furnish the data. But in agreement the confidential of data is P&C.

Yes Lily Lee. The annualised dividend is better than EPF return based on current price at 1.13
Most importantly their total clients in hand now also above 45. So it will also diversify the risk.

YoY profit up 18.5% and retained profit stands at 76mil. With total cash around 32mil ( cash in Hand + money market fund). As I said earlier QoQ may improve marginally but I was wrong due to transactional volume reduced as consistent with preceeding quarter as reported.
MAS and CELCOM secured total 450 staff only started in May & June ( Q4FY2021 for Scicom). Q4 report will be out usually in August.
Overall cash flow is healthy, zero debt and DPS maintained at 1.5cts translate to annualised of 5.35% ( as I believe Q 4 able to declare 1.5cts as QoQ profit may go up due to higher headcount unless some big cancellation of the projects)
ROE still stay above 21% with decent ROA as well.
Honor and Xiomi also outsourced to Scicom but with small scale and only marginal head count needed currently.
Anywhere those not happy with this co may sell and those still believe in this co may hold or add. It is just your own decision.
Just be Happy and welcome full lockdown and stay safe!

When you bought during that time sales started dropped Q by Q. Now Sales up Q by Q. The timing you buy must be right brother.

It depends on which year you bought in.
This year is a growing year for them. Hope Q4 DPS can be back to 2cts. Price back to RM2 and above.

BPO market in Malaysia is likely to surpass US$1.4bil by 2021, according to IDC.

Q3 profit as predicted as written on 18 May. There is not much surprising in Q3. But QOQ there will be marginal improvement.

Next week Q3 FY2021 profit out.

Daily cases of Covid- 19 spike daily to historical high cause averagely 850 to 1000 counters down daily. Regardless good and bad companies also being impacted.
As I know they are also just secured major project from Sri Lanka Govt from MOH( you may refer also to yesterday published info in Scicom Lanka FB). They provides covid-19 Helpdesk to Ministry of Heath. This is third government projects after Sri Lanka Airline and Bank of Ceylon. ( Both Govt owned) and also semi govt owned Seylan Bank.
Currently they are 144 head count for Sri Lanka Airline and 55 head counts rendered to Bank of Ceylon( just started in Feb this year)

Scicom HQ is based at Menara TA. They are renting from TA group( opposite KLCC). Scicom lanka is based in Colombo and one of their subsidiary ( 100% own) So far they only have two BPO offices.
Recently they secured MAS from Mindpearl ( BPO co as well) and Celcom from Aegsis.
About recent spike of covid 19 cases. I think they are doing well because about 90% of their staff work from home to ensure their operation can run smoothly without interruption for their clients.

@feenix1522
I have no idea about Q3 result. But I believe definitely better than Q2 . Reasons behind of additional headcount in like MAS ( 150 staff) and also some additional from Lenovo. Overall I believe Q3 can stand above 7mil after tax. For DPS I think still maintain at 1.5cts per q. The full force of Celcom only reflects in Q4. At time we may hope DPS back to 2cts. Above is just my humble opinion.

@songjoseoh you are such a funny guy.. am I got obligation to tell you WE? Very funny