Kenanga upbeat with ECS ICT
Publish date: Fri, 10 May 2013, 11:49 AM
Kenanga Research says ECS ICT Bhd (ECS) will continue to shine this year, underpinned by stronger sales of its enterprise network system, introduction of more products and a decent gross
domestic product growth expected for the year.
In its note today, Kenanga Research said the group had secured a few new product distributorships such as Lenovo smartphone, Microsoft surface RT Tablet PC, IBM's enterprise cloud computing solutions and Samsung mobility devices for the enterprise market in the first quarter of 2013.
Going forward, the research house said the group's ICT distribution segment is likely to be further boosted by expected higher demand for Ultrabook PCs as more advanced models are introduced at much cheaper price.
It said the company is also looking to further widen its smartphone products range by adding new brands to its current portfolio.
"Thus far, the group has bagged the ASUS, Huawei and Samsung brands in its smartphone portfolio," it added.
It said the group has also successfully broadened its distribution channel to more than 3,000 nationwide as compared to 2,500 in 2010.
"With the current widening of its product range and distribution channels, we expect the group's ICT distribution segment to continue to perform strongly.
"We are reiterating our 'market perform' call on ECS with an unchanged target price of RM1.22," the research house added.-- Bernama
domestic product growth expected for the year.
In its note today, Kenanga Research said the group had secured a few new product distributorships such as Lenovo smartphone, Microsoft surface RT Tablet PC, IBM's enterprise cloud computing solutions and Samsung mobility devices for the enterprise market in the first quarter of 2013.
Going forward, the research house said the group's ICT distribution segment is likely to be further boosted by expected higher demand for Ultrabook PCs as more advanced models are introduced at much cheaper price.
It said the company is also looking to further widen its smartphone products range by adding new brands to its current portfolio.
"Thus far, the group has bagged the ASUS, Huawei and Samsung brands in its smartphone portfolio," it added.
It said the group has also successfully broadened its distribution channel to more than 3,000 nationwide as compared to 2,500 in 2010.
"With the current widening of its product range and distribution channels, we expect the group's ICT distribution segment to continue to perform strongly.
"We are reiterating our 'market perform' call on ECS with an unchanged target price of RM1.22," the research house added.-- Bernama
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CS Tan
4.9 / 5.0
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Ben Gan
I expect ECS to report an improvement in its profits for the 2nd quarter ended June 30, 2013. The company has zero borrowings and lots of cash. This is a very safe counter. Accumulation of the stock at the current price of RM1.16 is likely to give you a good profit before the end of the year.
2013-05-10 12:37