On the 12 January 2021 EMGS filed Notice of Appeal against the Striking Out Decision. Scicom has, with the leave of the Court of Appeal applied to stay the Arbitration Decision Appeal pending the outcome of the Striking Out Decision appeal in the High Court.
The hearing date for the Striking Out Decision appeal in the High Court is 9th August 2021. The case management of the Arbitration Decision Appeal at the Court of Appeal is 11th August 2021.
Due to impairment of receivable 2.36mil. In actual this q profit should be 8.4mil It is due to delay of payment and we strongly believe it can collect back because Scicom client s are well known and established. Their total headcount is above 3200 and it also reflects in the quarterly historical high sales about 55mil. Furthermore two clients just started at the end of Q4FY2021 ( around end of May to June). Besides that they also need additional 50 agents to support Lenovo Hongkong Market and 300 for their two clients again. Overall profit margin improved and retained profit is at 76mil. DY is above 5% at this current level.
Thanks Vivientac for the analysis and does many study on ScIcom. With no doubt scicom is avery good company even during the critical period of the current pandemic. I will just hoot and keep this gem to Shine......Time wait for no man!
wah....so good like this Q3 should be 8m if not for impairment so Q4 at least 8m plus write back of provisions on slow payment....plus new clients heading for at least 10 sen eps FY 22.....so why is price in the basement Vivientac...
i'm a shareholder too, but let's be realistic. If without the impairment of 2mil+, the PBT will be 8m but not the PAT. I just hope the new client contribution is not fully reflected in the latest Q4, then we have hope to see PAT of 8m or more in the next quarter (hopefully to write back the 2m impairment too).
there is 1 highlight in the latest QR, the cash outflow for PPE is at record high of 12m (FY20 - 5m, FY19 - 2.4m, FY18 - 2.9m). Anyone could share us, why such asset light business spent so much on PPE? Is this a potential indicator for massive staff hiring, due to new office building, laptop or other related expenses?
Without the rm2++ impairment actually Scicom last q result Is over rm8 million PAT …pretty good. N they hv 2 new clients which could be contributing more in the future. This co no debt?? Or did I read wrong
CEO Leo bought 750k shares. Their Lenovo HongKong needed additional staff. Their total workforce now above 3400! Highest number since listed in 2006. Higher agents mean higher sales. Hope this coming Q1 profit breakthrough 8mil & DPS back to 2cts per quarter.
Base on FY2020 annual report, Scicom had about 2338 employees and reported net profit was RM22.05m. This means each employee contributed an average of RM9432 net profit per annum for the Company. The bulk of Scisom income is from BPO services. If the latest employee count of about 3400 is correct, investor can expect Scicom net profit for current FY2022 to be about RM32m (3400*RM9432). This gives EPS of about 9 cents in FY2022. So investors can expect quarterly dividend of 2 cents. The growth in profit from RM25.8m in FY2021 to RM32m FY2022 would be about 24%.
It is usually complex to make business profit forecast but for SCICOM, profit is directly linked to the number of employees they provide in BPO services.
SCICOM principal business activities are the provision of customer contact centre services within the Business Process Outsourcing (‘BPO’) space, which offers multi-lingual, multi-channel customer care, technical support help desk, consultative sales and associated fulfilment. Over 99% of the revenues comes from BPO.
Revenue is recognised when the outsourcing services are delivered according to the terms of the respective contracts with customers which should be similar from year to year.
For forecast purpose, I think it is reasonable to assume similarity base on the the past two years in 1) the BPO services SCICOM are serving 2) average BPO service contract rates 3) average BPO service volume handled per employee When above are similar from year to year, the revenue per employee would be similar. When the overhead and tax rates are similar, the net profit per employee would also be similar.
Year Employee Revenue per employee Net profit per employee 2020 2338 RM77558 RM9432 2021 2800 RM78284 RM9221
For estimation of FY2022 (June 2022), I assume that there are 3400 employees and the average revenue and profit per employee from FY2020 & 2021 can be used.
FY2022 revenue and net profit are therefore estimated to be RM265m and RM31.7m respectively. Profit margin is around 12% which is in between that of FY2020 (12.2%) and FY2021 (11.9%).
"(i) EMGS (cont’d) On 17 December 2020, the Kuala Lumpur High Court (“High Court”) struck out the action by EMGS against the Company and 3 others in KL High Court Civil Suit No. WA-22NCVC-88-02/2020 (“Striking Out Decision”). The action against the Company was struck out on the Judge’s own motion. In his brief oral grounds, the Judge stated that the Statement of Claim was defective, that the action was time barred and that EMGS did not have locus standi to bring the action. On the 12 January 2021 EMGS filed Notice of Appeal against the Striking Out Decision. Scicom has, with the leave of the Court of Appeal applied to stay the Arbitration Decision Appeal pending the outcome of the Striking Out Decision appeal. The hearing date for the Striking Out Decision appeal was adjourned on 9th August 2021 and has been relisted for 3rd March 2022. The Arbitration Decision Appeal at the Court of Appeal is adjourned for a Case Management hearing date after the Striking Out Decision appeal."
"(ii) Informatics International Limited On 29th November 2019, the Company was served with an Application for an Interim Injunction against the Company and its wholly-owned subsidiary namely Scicom Lanka (Pvt) Ltd (“SLPL”) along with six (6) employees of SLPL ......... There is no monetary claim sought in this action. The Company has appointed Counsel in Sri Lanka to represent its interests and that of its employees. The Company has sought and obtained legal advice that the Application for the Interim Injunction filed by IIL is frivolous and without merit. The Application for the Interim Injunction has no material financial or operational implications to the Company./"
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weesiong91
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Posted by weesiong91 > 2021-08-13 17:12 | Report Abuse
kalvin are you the case passed?pls see the last report