SCOMNET (0001) - Scomnet - Potential Net Cash Company

SCOMNET (0001) - Scomnet - Potential Net Cash Company

Company Profile
Supercomnet Technologies Berhad was originally incorporated in Malaysia in May 1991 as Supercomal Wires and Cables SDN. BHD., an integrated manufacturer of wires and cables for electrical and electronic devices.  The company adopted the present name to reflect its position as  manufacturer of advance wires and cables upon its listing as the first public company on ACE Market.
Brief History
From its humble beginning as a manufacturer of basic electrical wires & cables, Supercomnet Technologies Berhad (STB) is poised today to be a leader in the manufacturing of advanced high technology cables for the IT sector.
The company started its operation in August 1991 at their facility in Sungai Petani, Kedah, Malaysia with a total paid up capital of RM5 million.  The company was initially wholly owned by Taiwanese entrepreneurs.
However, to expand in the local investment environment, the company now includes highly capable Bumiputera partners with the highest level of managerial and entrepreneurial skills.  Today, the paid up capital has been increased to RM 20.25 million.  The company operates from its main factory (headquarter) in Sungai Petani, which the most of the main manufacturing activities as well as R&D, engineering, quality assurance, distribution, maintenance and marketing functions.
Supercomal Advanced Cables SDN. BHD. (SAC), a subsidiary of STB, is for more labour intensive assembly works such as wire / cable harnessing and wire process jobs.  It is also the production for the LAN cables of Cat 5/ 5E/ 6 data communication cables and is fully operation.
Supercomnet Technologies Berhad is one of the leading High-Tech Wires & Cables manufactory in Malaysia. All Supercomnet Technologies Berhad's products are produced to the utmost satisfaction for our customers through value creation. Supercomnet Technologies Berhad will achieve its intend growth and continuous profitability by maximizing its existing resources.
Supercomnet Technologies Berhad will strive to develop products that will embody the concept of intelligent living through the sharing of knowledge with our strategic partners.
Supercomnet Technologies Berhad remains firmly committed to proactively developing high-tech wires and cables for the I.T., telecommunication and other niche markets globally through the support of our technological excellence, experience and expertise, thereby creating the most satisfaction to our customers.
The Company is principally involved in the manufacture of PVC Compound and cables/ wires for electronic devices and data control switches. The subsidiary is principally involved in the manufacture of wires and cables for automotive industries. There have been no significant changes in the nature of the principal activities of the Group and of the Company during the financial year.

Scomnet revenue shows constant performance, its profit margin improve about 5% over the past two years, each quarter shows positive result which is remarkable compare to other ACE market counters . Notice the significant drop for latest quarterly result , it is due to one off impairment and slow inventories, if exclude these factors, It could post about RM2 mil quarterly profit.

The "other operating expenses" in P&L statement above shows negative RM1.9 mil due to impairmentand slow inventories, this is the reason why latest quarterly result decline, else it will shows profit increase in overall

Total asset RM 46mil 
Total liability only RM4mil
Which means the company is risk free interms of financing

Company is holding RM10mil in cash, which is equivalent to RM0.04 per share, where the
Current stock price is RM0.135
Current Nta is             RM0.170
Scomnet is NET CASH company

The 5years Scomnet technical chart does not show any obvious trend, It has very strong support line at RM0.1, at the current price RM0.135, add on current market sentiment, Scomnet has great potential to initial first uptrend for the past 5 years if it has successful attract public or investor attention.

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SCOMNET (0001) - Scomnet - Potential Net Cash Company