ECS (5162) - Stocks With Momentum: Ecs Ict
April 3, 2015 : 10:40 AM MYT
Ecs Ict Berhad (+ve)
ECS (Fundamental: 2.0/3, Valuation: 2.4/3) was first picked by our system on March 6 at RM1.53. Since then, the stock has risen 8.5% to RM1.66, partly due to its appointment as an authorised distributor of Xiaomi MiPad tablets in Malaysia, and better earnings results.
Pre-tax profit rose 7.2% y-o-y to RM39.2 million in 2014 while sales jumped 20.0% to RM1.6 billion, mainly due to higher contribution from ICT distribution and services segments.
ECS is Malaysia’s largest distributor of ICT products such as notebooks, personal computers, software, servers, smartphones and tablets. It has over 5,000 resellers covering 40 well-known brands. It has an asset-light balance sheet with net cash of RM89.7 million or 30.8% of its market capitalisation. ROE was a solid 14.2% in 2014.
The stock is trading at a trailing 12-month P/E of 9.9 times and 1.3 times book. Dividends totalled 6 sen per share in 2014 (including final dividend of 3 sen ex-entitlement on June 3), giving a yield of 3.7%.
http://www.theedgemarkets.com
April 3, 2015 : 10:40 AM MYT
Ecs Ict Berhad (+ve)
ECS (Fundamental: 2.0/3, Valuation: 2.4/3) was first picked by our system on March 6 at RM1.53. Since then, the stock has risen 8.5% to RM1.66, partly due to its appointment as an authorised distributor of Xiaomi MiPad tablets in Malaysia, and better earnings results.
Pre-tax profit rose 7.2% y-o-y to RM39.2 million in 2014 while sales jumped 20.0% to RM1.6 billion, mainly due to higher contribution from ICT distribution and services segments.
ECS is Malaysia’s largest distributor of ICT products such as notebooks, personal computers, software, servers, smartphones and tablets. It has over 5,000 resellers covering 40 well-known brands. It has an asset-light balance sheet with net cash of RM89.7 million or 30.8% of its market capitalisation. ROE was a solid 14.2% in 2014.
The stock is trading at a trailing 12-month P/E of 9.9 times and 1.3 times book. Dividends totalled 6 sen per share in 2014 (including final dividend of 3 sen ex-entitlement on June 3), giving a yield of 3.7%.
http://www.theedgemarkets.com
