Posted by cch1975 > 2015-05-16 07:22 | Report Abuse

Mocics How do you view about their sri lanka and Indonesia business? Thanks.

Posted by mocics > 2015-05-17 10:57 | Report Abuse

cch1975 - Sri Lanka and Indonesia are not major contributors at the moment. Sri Lanka is home ground to the MD but changing political situation make it inherently more tricky to land projects. Indonesia, again is more of a call center for now but potentials are great.

Scicom is in a BPO + services business. Major clients are mostly MNC. While people never think of them an e commerce company - they are very much the backend enabler (from a software stand point) i.e. to the tune of tracking the delivery of pizza and the location of the delivery boy etc.

Even as a call center, they are not the cheapest in the region (Phil is much cheaper) but they delivered quality and add on services - which is really the lucrative part. Thats why they keep adding new clients

cch1975, you need to think further about education - With ringgit depreciating, Malaysia has been able to attract more foreign students from around the region (not necessary the best quality..). This will augur well for education providers like SEGI, HELP and INTI etc, except the HELP and INTI have been privatized so no play for you there! With more foreign students, EMGS will likely able to process more foreign student visa applications and thus more profitable. That's why you need to infer from SEGI recent results which grew 50+% in 1Q2015.

I did not quite understand pumag's statement about expand student pass processing for the whole country? They have been doing for all the private universities and will expand into public universities (UM and UKM etc) and language schools (prob by 2HCY2015). Also, I believe this is substantially less political than say MYEG or Prestariang (esp Prestariang, which depends on Msia govt as a pay master) , the project with EMGS has enabled the turn around time of visa processing and approval to shortened substantially and improved the attractiveness of Msia as a study destination.

Posted by cch1975 > 2015-05-17 22:23 | Report Abuse

Ya . EMGS is growing . But how about their college and academy since no significant profit from there. Thanks mocics .

Posted by mocics > 2015-05-18 07:32 | Report Abuse

I always think that is just complimentary biz - to train people for their own Call Center business etc. Never a real profit contributor per se. Having said that, assuming the MAS contract comes through in 2H (or FY16), it should give it a big boost, for one to two years at least (and you should thus get some extra dividend! haha)

Posted by mocics > 2015-05-18 09:52 | Report Abuse

anyway, stock price looks pretty bottom out for now. Likely to trade to the upside as we approach results by end of the month...

Posted by dylon > 2015-05-18 13:25 | Report Abuse

Spot on mocics! Wonder where you find out all the scicom business news....appreciate if you would share :)

Posted by cch1975 > 2015-05-18 21:00 | Report Abuse

Thanks mocics . How much do you think scicom price can go within this year?

Posted by johnny cash > 2015-05-18 21:11 | Report Abuse

Thanks mocics

Posted by mocics > 2015-05-18 22:27 | Report Abuse

cch1975: That is really a tough question to answer - much depends on what the company can deliver consistently and what people are willing to pay for it (i..e market is still healthy) from a PER angle.

Assuming it can delivers an EPS of RM0.13-RM0.14 for FYJune16 (hoping this year - FY15 to come in at around RM0.10-RM0.11 per share), then we should see RM2.80 - RM3.00 (based on similar matrix to CIMB's valuation of Myeg FYDec16 PER of 21.6x)

Is it possible? Well yes! Is it probable? Sure! But this is of course provided all stars are aligned :). Then again people are paying up for very much less in some of the names.....

Posted by cch1975 > 2015-05-19 18:52 | Report Abuse

Mosaics the price is hovering around 2.13 to 2.15 look like nobody is interested about this stock even q3 is going to announce soon.

Posted by Stevecheahsw > 2015-05-19 20:32 | Report Abuse

Choo, how much your average price?

Posted by cch1975 > 2015-05-20 06:37 | Report Abuse

Good morning mocics do you think their international college can contribute significantly to their profit?

Posted by mocics > 2015-05-20 07:48 | Report Abuse

good morning - it is very hard to know how the stock will move on a day to day basis, sometimes some institutions need to sell for their own reasons and is not fully base on fundamentals. I think interest is still there but Scicom need a catalyst and hopefully the 3Q results will provide that.

International college? Is this not the training school? I believe it is not the main driver of their earnings growth.

Posted by cch1975 > 2015-05-20 23:36 | Report Abuse

But I suppose colombo centre should be growing because they secured seylan bank, Toshiba etc. Mocics do you think their education profit will contribute hugely as the CEO said before? Their total client now more than 40?

Posted by ray81 > 2015-05-25 17:50 | Report Abuse

good result!!!!..hopefully market is good tommorow.

Posted by waihung82 > 2015-05-25 18:16 | Report Abuse

yes....the result quite nice

Posted by waihung82 > 2015-05-25 18:17 | Report Abuse

plus another 2c interim div

Posted by cch1975 > 2015-05-26 06:41 | Report Abuse

I strongly believe q4 will break 10mil since education profit not yet in as mentioned in q3 report.

Posted by mocics > 2015-05-26 07:51 | Report Abuse

The results are actually decent - not quite 'out of the park' so to speak.

So what is to come going forward? With MAS reorganization in full swing, we could potentially see the training contract kicking in by 3Q2015, so that should provide a good booster to the earnings at least for a year. Other biz is expected to show good growth as well as they are bidding for many contracts...

The 2c interim is very good - considering that it has a 1 for 5 bonus issue back in Nov 2014, consistently growing.

Long term investors should continue to hold on to the stock and buy on any pull back!

Posted by cch1975 > 2015-05-26 12:29 | Report Abuse

True mocics . How many clients in total Scicom is having now?

Posted by cch1975 > 2015-05-26 19:12 | Report Abuse

Mas call centre also outsource to scicom mocics ?

Posted by mocics > 2015-05-27 07:27 | Report Abuse

Not that I know of.

Posted by cch1975 > 2015-05-28 16:13 | Report Abuse

Scicom Is the most steady stock so far I have ever met.

Posted by cch1975 > 2015-05-29 20:51 | Report Abuse

Mocics Why u said scicom can overtake myeg in term of mkt cap . I saw myeg a lot buyers daily and mkt cap above 1bil . Scicom only 750mil . The gap is too huge.

Posted by mocics > 2015-06-01 07:38 | Report Abuse

You are right that the gap is still quite large: Myeg's market cap is RM3.0bn vs Scicom is RM750m. However, dont forget MYEG's market cap was only around RM500m in 2013 (nobody looks at it then) and it has increased six-fold since. Similarly, Scicom's market cap has gone from RM200m to now RM750m in the last eighteen months.

What I am saying is that if Scicom can execute is growth plan well over the next two years (growing @ 40-50% p.a.), with a bit of luck, it can get rerate one more time by the investment community.

Dont get my wrong, I liked MYEG but has since sold my position (after the multi-baggers gain). Personally, I feel MYEG has seen increasing risk given current political situation and the risk reward ratio is no longer in my favour. Scicom is more diversify given the list of international clients and can thus expand regionally with relatively ease.

So at this juncture - I like Scicom better, risk reward wise...

Posted by RosmahMansur > 2015-06-01 21:36 | Report Abuse

I wonder, why ppl are chasing this stock despite its expensive valuations? P/B ratio of 10 with intrinsic value of just 70sen. But no doubt, its ROE is attractive at 40% and is cash rich. It pays attractive dividend per year of up to 10sen ( approx 5%) which is quite good.

Posted by mocics > 2015-06-02 08:46 | Report Abuse

Generally speaking, P/B is not a good measure for this type of service orientated and asset light company - they dont own building or heavy machinery or air planes! Look at all the tech company to a certain extend. What you are paying for is the management's skill set to grow the revenue stream. As you also rightly point out, ROE of 40% and cash rich - and more importantly willingness to pay out dividend to investors.

Posted by lenyan > 2015-06-03 10:20 | Report Abuse

thanks to scicom for double my money in a year.. well it is time to sell some of it.

Posted by Friendship > 2015-06-03 11:10 | Report Abuse

I always believe Scicom can reach RM5 in the medium term...at the moment, I just treat it as FD earning 2 cents a quarter

Posted by cch1975 > 2015-06-05 06:02 | Report Abuse

Any recent projects they secured besides Axiata in colombo, Fujitsu, Lenovo and Ctos mocics? I heard they are providing call centre to some banks in Sri Lanka. So far i only know is seylan bank. Any other banks?

Posted by heaven > 2015-06-09 21:25 | Report Abuse

Looking at the current market with weak government, 1mdb n economics will scicom be drag down as well. Should we make some profit now then buy back when it drops

Posted by cch1975 > 2015-06-11 06:45 | Report Abuse

Any recent projects they secured besides Axiata in colombo, Fujitsu, Lenovo and Ctos mocics? I heard they are providing call centre to some banks in Sri Lanka. So far i only know is seylan bank. Any other banks?

Posted by cch1975 > 2015-06-15 19:29 | Report Abuse

Anyone of you disposed 0099?

Posted by heaven > 2015-06-15 22:30 | Report Abuse

Should we ?

Posted by heaven > 2015-06-15 22:41 | Report Abuse

Looks like market will crash soon

Posted by cch1975 > 2015-06-16 05:54 | Report Abuse

Mocics what is your opinion?

Posted by mocics > 2015-06-16 08:26 | Report Abuse

I think stick to fundamentals is still the best strategy. The current weakness presents good opportunities for investors that can see the longer term value to buy....

Posted by mocics > 2015-06-17 07:47 | Report Abuse

Selling seems to be well adsorbed yesterday. 1.5m shares traded (vs normal day of 500k+) - which is quite decent for this stock. I think it will continue to recover towards the 2.2-2.3 level given increasing institutional involvement.

Posted by cch1975 > 2015-06-19 20:40 | Report Abuse

Mocics what is the currently projects they secured?

Posted by Stevecheahsw > 2015-06-19 23:34 | Report Abuse

Director share buy back

Posted by shazza > 2015-06-20 19:21 | Report Abuse

Thanks Mocics

Posted by shazza > 2015-06-20 19:22 | Report Abuse

Anyone received dividend? ex date 4 June.

Posted by shazza > 2015-06-20 19:23 | Report Abuse

Thanks Scicom

Posted by shazza > 2015-06-20 19:34 | Report Abuse

Director bought a large amount a day or two ago around 2.10.

Posted by mocics > 2015-06-22 08:13 | Report Abuse

shazza - The dividend will be paid today (22/6). Yes, the MD bought shares on 16th June. So far his timing has been pretty good - he buy on pull back and just accumulate.

cch1975 - I heard they are in talks with several clients at the moment; some of which are pretty chunky (with job scope go beyond just providing seats for BPO but more for consultancy works etc)

Posted by cch1975 > 2015-06-22 12:51 | Report Abuse

Is it big projects mocics?

Posted by cch1975 > 2015-06-22 17:14 | Report Abuse

Mocics the scicom seems like not moving..not interested from public at all.

Posted by mocics > 2015-06-23 07:43 | Report Abuse

I dont think Public is fully aware of it also - it does not really capture the attention of all the day traders..may be only after it reached RM3....haha

Posted by cch1975 > 2015-06-23 13:37 | Report Abuse

Do you think it can reach rm3? But myeg everyday is active.

Posted by mocics > 2015-06-23 14:47 | Report Abuse

Foreign institutions are into myeg for a while now and as such you will be more trading. Scicom is still early day, most institutions are not willing to let go at this level. I know of at least one local institution owning more than 6% of the company....When foreign institutions finally participate into Scicom, expect to worth more than RM3....if all goes well of course..haha