Posted by newbie8080 > 2020-03-29 17:03 | Report Abuse

Not sure how this company can benefit from COvid-19

This details from annual report:

Products and Markets
1.Automotive Cables
SAC’s cables are part of the automotive wiring harnesses, which form an integral part of electric power for various
systems in an automotive such as power window systems, lighting systems, ignition, alarms, air conditioning.

2.Electrical appliance and consumer electronics cables.
STB manufacturers power supply cables and specialised cables for audio and video signals.

3.Cable for Medical Products and Devices
SMP produces medical cables are generally used for connecting various medical devices outside the human body. SMP’s products also include reinforced tubes (used as endoscope or as part of endoscopy accessories), connectors,medical tubes.

This from website:

http://supercomal.com.my/supercomal.com.my/product.html

Posted by brandee > 2020-03-30 11:51 | Report Abuse

https://www.thestar.com.my/news/world/2020/03/28/at-some-us-hospitals-drugs-catheters-oxygen-tanks-run-low

Posted by brandee > 2020-03-30 12:00 | Report Abuse

Scomnet supplies catheters, cannulas, and urine bags. Its clients include blue chip companies like New York listed Edward Life Sciences Corp and Denmark Listed Ambu AS.

Posted by BobLimm > 2020-03-31 18:03 | Report Abuse

They are one of the key supplier of Edwards Lifesciences and if you analyse EW business portfolio, their devices are used in critical care to monitor patients health conditions, provide realtime data to support clinicians to administer drug in ER or ICU. With global surge in EU demand (next USA) of hospital beds and fixture, every ICU or ER will need monitors and cables in tens of thousands cables. For sure, Scomnet business will benefit from this epidemic.

Posted by luckycharm > 2020-04-01 10:03 | Report Abuse

Comin watchout another wave...

Posted by yeoqian > 2020-04-01 11:56 | Report Abuse

summarize it here

https://www.i3investor.com/blogs/0001/2020-03-31-story-h51437263-Scomnet_0001_Another_Healthcare_Beneficiary.jsp

Posted by yeoqian > 2020-04-01 12:01 | Report Abuse

Guess this stock is overlooked by the investing communities.



They are a key player in the medical devices supply chain that supplies to renowned lifesciences mufacturers & industry players like
Edwards Lifesciences, Ambu, etc.

Best of all, the products are certified and accredited by CE marking for European Economic Area (EEA) & American Food & Drug Administration (FDA)


1) As of latest Financial for FY2019, supercomal contributed over 65% the group revenue. Reason why the group has been registering profit growth (considering the stagnant contribution of its Electrical wires & cable)

- https://www.malaysiastock.biz/Corporate-Infomation.aspx?securityCode=0001 (Supercomal 's revenue was flat prior to 2018 before the 100% acquisition of Supercomal medical products s/b)

2) Comparing the recent revenue before and after the acquisition, the contribution in terms of revenue to the group is quite significant. FY2018 53.29mil (88.29 mil - 35mil*) & FY 2019 @ 87.97m (122.97m - 35mil*)


FY 2020 ?? - Refer below

NPM FY17: 7.52%
NPM FY18: 12.65%
NPM FY19: 15.31%
NPM FY2020: Will leave it to you guys to quantify based on the prospects.

( * Considering the flat contribution by using previous average revenue contribution to the group of 2016 & 2017 RM 35mil every year. )


The raw materials for tubes and medical devices are both Copper & Polyvinyl Chloride (PVC) which are currently trading at the low. This benefits the group judging from operating expenses of the group

https://www.investing.com/commodities/copper?cid=959211



3) Some may not aware that the major customers for the group is Edwards lifesciences & Ambu.

a) Ambu -

Ambu A/S is a Danish company that develops, produces, and markets diagnostic and life-supporting equipment and solutions to hospitals and rescue services.

The largest business areas are Anesthesia, Cardiology and Neurology in which the most important products are ventilation products for artificial respiration and single-use electrodes for ECG tests and neurophysiological mappings.

Though these may not be the ventilator but as u all know respiratory ventilation products are all essential in order to treat infected covid 19 patients due to the shortage of the ventilator equipment.


Ambu develops and commercialises single-use medical devices which play an important role in modern health care and help flattening the curve of COVID-19 infection spread. We are committed to keeping our employees and partners safe, while doing our utmost to meet the demand for our products.

https://www.ambu.com/about/corporate-info/investors/investors

b) Edwards lifescience

We are proud to be a member of a critical health infrastructure and admire the agility and passion of Edwards’ employees in maintaining their important work during this challenging environment. Our team is dedicated to ensuring a global supply and providing real-time support for front-line clinicians at a time when it is needed most.

https://www.edwards.com/covid-19-edwards-response?fbclid=IwAR1k2rSW8mo5q13uazTVGR7zjXk8I7Zyqz7aJq-wXCkZqZLP_1aRTo8zsLI


3) Lastly, the products produced by the group include reinforced tubes (used for endoscope and endoscopy accessories), connectors, medical tubes for ROHS & Reach compliant materials. which is currently in high demand.

Source:
https://www.thestar.com.my/news/world/2020/03/28/at-some-us-hospitals-drugs-catheters-oxygen-tanks-run-low



Healthcare related stocks valuation tend to trade above its fair value during virus pandemic. However, given that this stock has traded 54% lower from 52 weeks High @ 1.08 and 58% higher from 52week low think it's wise to collect from anything that is below 50c (it's t+2 today, can try to fish for some bargain)

Posted by ZStrader > 2020-04-01 17:04 | Report Abuse

lets it drop a few.more cent...

Posted by mf > 2020-04-02 09:57 |

Post removed.Why?

Posted by KINGCOBRA3 > 2020-04-02 09:59 | Report Abuse

bullish trend....BUY

Posted by yeoqian > 2020-04-02 10:07 | Report Abuse

just to add on the shortage of medical tubes and catheters that was reported in star media.


https://www.thestar.com.my/news/world/2020/03/28/at-some-us-hospitals-drugs-catheters-oxygen-tanks-run-low


Too bad, these can be reused or recycled.


Guess local companies would have started procuring these from the company..any thoughts?

Posted by yeoqian > 2020-04-02 10:07 | Report Abuse

just to add on the shortage of medical tubes and catheters that was reported in star media.


https://www.thestar.com.my/news/world/2020/03/28/at-some-us-hospitals-drugs-catheters-oxygen-tanks-run-low


Too bad, these cannot be reused or recycled.


Guess local companies would have started procuring these from the company..any thoughts?

Posted by Value888 > 2020-04-02 10:12 | Report Abuse

Supply medical component. Bullish.

Posted by luckycharm > 2020-04-02 10:25 | Report Abuse

Uptrend buy .... bullish still cheap this stock

Posted by luckycharm > 2020-04-02 10:26 | Report Abuse

Should be 0.80 cent above

Posted by drteh84 > 2020-04-02 12:16 | Report Abuse

medical supplier :)

Posted by luckycharm > 2020-04-02 14:44 | Report Abuse

Always stagnant at 0.540 come on

Posted by LiimInvest > 2020-04-02 15:53 | Report Abuse

Scomnet in the spotlight after news of FDA approval
CORPORATE NEWS
Wednesday, 21 Aug 2019
By TEE LIN SAY

Posted by BobLimm > 2020-04-03 14:02 | Report Abuse

https://www.nst.com.my/business/2020/04/580881/stb-sees-surge-new-orders

Posted by BobLimm > 2020-04-03 14:08 | Report Abuse

Surge in new orders from Covid pandemics!

Posted by Tete7893 > 2020-04-03 17:21 | Report Abuse

good news ! hope next month can join their AGM eat free n get gift free !!!

Posted by hongheng7 > 2020-04-03 18:52 | Report Abuse

Their AGM give what door gift for shareholder?

Posted by newbie8080 > 2020-04-03 19:11 | Report Abuse

Wow, so many promoters.

Posted by VSLSB > 2020-04-03 22:36 | Report Abuse

That is a sign that big money is exiting

Posted by LiimInvest > 2020-04-04 17:15 | Report Abuse

https://www.enanyang.my/news/20200404/神通网络医疗设备需求激增/

Posted by KINGCOBRA3 > 2020-04-06 09:07 | Report Abuse

early morning gap up momentum.....

Posted by yeoqian > 2020-04-06 09:14 | Report Abuse

that's a good sign .. curious where are the sellers of its SComnet-wa ?

Posted by LiimInvest > 2020-04-06 09:15 | Report Abuse

Up up up

Posted by LiimInvest > 2020-04-06 14:03 | Report Abuse

Description
SCOMNET produces equipment cables, shielded wires, computer cables, power supply cords, speaker wires, jumper cables, keyboard cables, and other products.

Fundamentals
SCOMNET, which manufactures critical devices used for 2019 novel coronavirus (COVID-19) disease treatment, has recorded an increase in product demand, particularly since the beginning of 2020. Moving into the second quarter of the year, SCOMNET expects to see further increase in new orders, especially from the US and Europe.

Posted by luckycharm > 2020-04-06 14:55 | Report Abuse

Lockdown on scomnet stock

Posted by luckycharm > 2020-04-06 14:57 | Report Abuse

Next q vry good ... sapu in this stock no wrong

Posted by LiimInvest > 2020-04-06 17:05 | Report Abuse

Today up 0.105 cent

Posted by luckycharm > 2020-04-07 13:05 | Report Abuse

Steady Pom pi pi

Posted by yeoqian > 2020-04-07 15:41 | Report Abuse

so quiet, all sold?

Posted by luckycharm > 2020-04-07 16:22 | Report Abuse

Still holding to scomnet rest

Posted by calvinfong_them > 2020-04-07 17:59 | Report Abuse

what is the price can let go?

Posted by BobLimm > 2020-04-07 18:14 | Report Abuse

Predicting more good news coming...

Posted by angch99 > 2020-04-07 19:56 | Report Abuse

LKL secure new PPE order of RM7.01M to Swak health dept. (business star).

Posted by yeoqian > 2020-04-09 01:25 | Report Abuse

Guys, Stumbled upon a positive news


Ambu released its profit guidance on 6 Apr, worth to note that this particular endoscopy is supplied by the Co.

(Particularly emphasised on endoscope)
https://www.ambu.com/corporate-info/investors/news-from-ambu


Ambu pre-announces results for Q2 2019/20 with organic revenue growth of 24% and sales of 313,000 single-use endoscopes. On this basis, the guidance for organic revenue growth for the full year is upgraded from “16-22%” to “26-30%” and the number of endoscopes sold is increased from “approx. 900,000” to “more than 1 million”.

(I will update less here as i3 is not user friendly, keep removing my blog :(. )

First barrier, around 71-73c.. If this area is valid, we should see further upside.

This is a growth stock during the virus pandemic, given that the healthcare p/e is 30x on average.. p/e of 20x seems way too cheap..



To be cont

Posted by dasm1284 > 2020-04-09 09:20 | Report Abuse

thanks yeoqian. this is indeed an overlooked gem

Posted by yeoqian > 2020-04-09 10:00 | Report Abuse

Highlighted very clearly in layman terms by nst below (posted this in another site-"screener" before, hardly come in here)

https://www.nst.com.my/business/2020/04/580881/stb-sees-surge-new-orders



Among its products that have seen a surge in orders include the disposable bronchoscope, which is used in the first line of lung treatment for patients with suspected or confirmed Covid-19 infections.

The usage of the bronchoscope is currently highly recommended by the American Association for Bronchology and Interventional Pulmonology.

The other product is a critical care monitoring cable that is presently being used for Covid-19 patients in the intensive care unit.

STB produces medical cables that are generally used for connecting various medical devices outside the human body.

It also produces reinforced tubes - used as endoscope and part of endoscopy accessories, connectors and medical tubes.

All of its medical tubes are produced for the North and Central American and European markets.

----

waiting to see if there is force selling today

Posted by tr4d3rnow > 2020-04-09 17:34 | Report Abuse

steady!

Posted by yeoqian > 2020-04-10 10:08 | Report Abuse

why steady?

Posted by BursaFollower > 2020-04-13 07:38 | Report Abuse

go green please

Posted by luckycharm > 2020-04-13 10:19 | Report Abuse

Still got room to grow 0.98 fast fast onboard now... steady Pom pi pi

Posted by flexibt > 2020-04-13 11:00 | Report Abuse

Kenanga so aggressive..

Posted by t_nike2002 > 2020-04-13 12:06 | Report Abuse

@luckycharm what is the date of the report you posted?

Secondly, per the report, the target price is just RM0.61 Vs. overshot price of RM0.7 now...

Posted by luckycharm > 2020-04-13 12:19 | Report Abuse

Supercomnet Technologies Bhd
• BUY with target price of RM0.98 premised on 25x PER FY20 against Bursa Malaysia healthcare sector of PER 30x.
• Scomnet medical cable to see 30% earnings growth with increased spending in healthcare amidst the Covid-19 pandemic on the back of improved demand.
• Since February, it has seen a surge in orders for disposable bronchoscope which is the main component used in the first in line lung treatment for patients with respiratory infections and critical care monitoring cable for the use in intensive care units.
• Its cables are approved by the European Medical Agency (EMA) and Food & Drug Administration (FDA) for Europe and North and Central America with key clients such as Edwards Lifesciences and Ambu, both major players in different segments of cardiovascular medical devices space globally.
• Scomnet is set to benefit from the stronger USD as it exports over 70% of its products. In addition, copper which accounts for more than 50% of its raw materials has seen price fall to a 4-year low.
• Balance sheet remains solid with net cash of RM46m and zero borrowings.
• Current net margins of 15% is set to improve to 18% by FY20 and FY21. This would catapult the group’s
earnings to a new high and expect EPS to chart double digit growth of 35% and 20% for FY20 and FY21 respectively

Posted by luckycharm > 2020-04-13 12:20 | Report Abuse

Supercomnet Technologies
BUY
Set for robust growth
We are optimistic on Supercomnet Technologies Bhd (“Scomnet”) as prospects on their earnings growth are encouraging from their medical cables used for Covid-19 related treatments has seen surge in orders from Europe and US. The company is likely to achieve record earnings for FY20 and FY21. We have a BUY with target price of RM0.98 premised on 25x PER FY20 which we applied a 20% discount to Bursa Malaysia healthcare PER 30x due to its smaller market cap.
Scomnet is principally involved in the manufacturing and sub- assembly of wires and cables for medical devices, electrical appliance, consumer electronics and automotive markets. The group’s crown jewel - Supercomnet Medical Products Sdn Bhd will be the key growth driver with the increased spending in healthcare amidst the Covid-19 pandemic. Scomnet produces medical cables that are generally used for connecting various medical devices outside the human body which are used in endoscope and part of endoscopy accessories, connectors and medical tubes.
Since February, it has seen a surge in orders particularly for the disposable bronchoscope which is the main component used in the first in line lung treatment for patients with respiratory infections and critical care monitoring cable for the use in intensive care units. Its cables are approved by the European Medical Agency (EMA) and Food & Drug Administration (FDA) for Europe and North and Central America with key clients such as Edwards Lifesciences and Ambu, both major players in different segments of cardiovascular medical devices space globally. Scomnet has been supplying it’s FDA and EMA approved components for over 10 years. Currently its medical segment contributes more than half of group’s revenue and is expected to be over 65% with the increased demand.
Scomnet is also set to benefit from the stronger USD as it exports over 70% of its products. In addition, copper which accounts for over 50% of its raw materials has seen price decline to a 4-year low. Balance sheet remains solid with net cash of RM46m and zero borrowings. Prevailing net margins of 15% is set to improve to 18% by FY20 and FY21. This would catapult group’s earnings to a new high and expect growth momentum to continue with EPS to chart double digit growth of 35 % and 20% for FY20 and FY21 respectively.
Source: Thomson Reuters
Price: RM0.98
Target price: RM0.61
By Vincent Lau | Vincent.lau@rakutentrade.my
KLCI
YTD KLCI change
YTD stock price change
1,357.5 -14.6% -15.9%
Stock Information
Market Cap (RM’m) Issued Shares (m) 52-week range (H) 52-week range (L)
392.2 643.0 1.08 0.315
Major Shareholders
Shiue Jong-Zone Wu Huei-Chung Wu Chung-Jung Hsueh Chih Yu Shiue Jyh-Jeh
20.9% 14.4% 11.1% 10.8% 10.5%
Summary Earnings Table
FYE Dec (RM’m) 2018A
2019* 2020F 2021F
Turnover 88.3
121.0 140.0 160.0
EBIT 14.9
23.6 30.3 32.3
PBT 14.5
23.6 30.0 32.3
Net Profit 11.2
18.8 25.0 30.0
Consensus -
---
EPS (sen) 2.1
2.9 3.9 4.7
EPS growth (%) 92.5
42.2 34.6 20.0
DPS (sen) 1.5
- 1.6 1.9
PER (x) 29.6
20.8 15.5 12.9
BV/Share (RM) 0.30
0.32 0.35 0.38
ROE (%) 5.7
9.6 11.3 12.6
Div. Yield (%) 2.5
- 2.6 3.1
Technically Speaking
Resistance level
Support level
RM0.75
RM0.50
Sources: Company, Rakuten Trade Research

Posted by luckycharm > 2020-04-13 12:20 | Report Abuse

Post by rakuten today... buy buy buy