HL : Maintain BUY with an unchanged TP of RM2.28, as we ascribe a P/E multiple of 30x
for SMRT pegged to FY26f earnings. Considering the substantial earnings potential arising from the utilities and financial services sectors and the growing recurring earnings base, we find SMRT's current FY26 forward P/E of 14.9x to be undemanding, making it a compelling case. The proliferation of managed site post site deployed will lead to a steady growth in the recurring income base.
By HL: Technically, with prices now back above the 20D/50D MAs and lower BB, SMRT (CP: RM1.18, BUY, TP: RM2.19) appears to be in a recovery state. A decisive breakout above RM1.21 overhead barrier will boost upside momentum towards RM1.27 (Aug 13 high), RM1.30 (76.4% FR) and RM1.40 (YTD high) levels. Major supports are pegged at RM1.14 (20D MA), RM1.10 (LT support trendline) and RM1.07 (23.6% FR).
Research analyst's price target used to be inaccurate. But after 2023, everything changed. If you track all these analysts' calls, you would have done very well. Do not fight against their price target
HL : SMRT-As steady as it goes. FY25 is shaping up to be a promising year for SMRT, driven by robust deployment schedules anticipated from key clients such as Tenaga, Air Selangor, and PLN. This will lead to a series of sequential quarter-on-quarter growth throughout the financial year. Additionally, the group is actively exploring M&A opportunities to facilitate horizontal expansion, enabling it to penetrate new market segments and strengthen engagement with existing customers. We maintain our BUY rating on SMRT with an unchanged target price of RM2.19, reaffirming its position as one of our top picks within the tech application sector.
Next catalyst would be opportunities from Data Centers. Since most data centers using smart monitoring systems i think the potential for SMRT is huge.. Deployments should start as early as next year or in 2026 because many data centers already in construction phase. Lets find out if my theory is right..
Main client is still Tenaga. SMRT supplies highly specialised tech solutions for Tenaga to operate substations automatically under N'osairis Sdn Bhd. The tech isn't hard to understand; it's just that SMRT currently monopolises the market. However, one risk is that their non-executive director (guy from UK) resigned from the company in July. Not sure how exactly that would affect the stock but this looks like a ST trade
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
jusztpu2ra
24 posts
Posted by jusztpu2ra > 2024-07-04 17:35 | Report Abuse
Ministry of Finance keep acquiring. Keep laughing while i laugh to the bank