BCMALL (0187) : Buy for your future



BCMALL (0187) – BCM Alliance Berhad
BCM involved in the distribution of commercial laundry equipment (15 years) & medical devices (10 years) in Malaysia. Revenue contributed by business segment
 
Commercial Laundry Equipment – 58.7%
Medical Devices – 37.4%
Healthcare products – 3.9%
 
Prospects:
1) Setting up of Speed Queen self-service launderette outlets
2) Continuous expansion of existing portfolio of products and brands
3) Expansion of healthcare products segment in year 2018
4) Broaden new customer base and continuous enhance relationship on existing customer base
5) Management expects medical device division to be key engine for earnings growth in the future as they expect to see slowdown in laundry equipment business due to market saturation.
6) To expand its medical devices segment, BCM acquired 51.03% stake in Cypress Medic Sdn Bhd (healthcare company), with profit guarantee of RM600K during first year.
7) Aiming to transfer from ACE market to main board in next two years
 
Commercial laundry equipment (contributed 58% to FY17 revenue). Growth in this segment is driven by rising popularity and demand of self-service laundrettes, conversion of traditional laundry service to self-service launderettes and increasing demand from healthcare services and hospitality sectors. The successful penetration into the Borneo region has opened new markets for BCM.
BCM has plans to set up 11 new Speed Queen self-service launderettes and concept stores throughout Malaysia. As at end-1QFY18, the company has set-up four outlets in Selayang, Sri Kembangan and Johor Bahru. It is currently identifying suitable locations in Klang Valley and Johor for the setting up of the remaining 7 outlets.
Medical devices (42% to revenue) industries. For this segment, demand is driven by the increasing number of healthcare providers, clinics, diagnostic imaging centres, and private and government hospitals throughout Malaysia. In addition, the securing of new products/brands also served to enhance the growth avenues in this division. In Feb-18, it was appointed as the distributor for Siemens Healthineers’ cardiac angiography system and fluoroscopy system. Overall, demand in the medical devices segment will be driven by the increasing need of a growing and ageing population, the promotion of Malaysia as a medical tourism hub and its new healthcare products segment.
New kid on the block - Healthcare products. The acquisition of a 51.03% stake in Cypress Medic in Feb would expand its reach into the distribution of healthcare products and clinical services in the retail market/pharmacies, which is complementary to its current distribution of consumable medical devices. Cypress Medic’s core business is in the trading and distribution of surgical, implants and clinical devices such as blood pressure monitor, nebuliser, thermometer, body fat monitor and sphygmomanometer for the medical devices market in Malaysia.
FA: Both revenue and eps in the last two quarter obviously shows a lot of improvement, we are expecting further improve in the coming quarter result
 
 
TA: BCM next resistance level is RM0.23, If it can break through the resistance, we should expect it will spike up at least to RM0.275, return to the pricing of the first day listed in Bursa market
 
BCM TP1 :RM0.28   TP2:RM0.3
 
THANK YOU FOR YOUR SUPPORT!!!
 
 
Disclaimer: The content on this site is provided as general information only and should not be taken as investment advice.

All site content, shall not be construed as a recommendation to buy or sell any security or financial instrument.
The ideas expressed are solely the opinions of the author. Any action that you take as a result of information, analysis, or commentary on this site is ultimately your responsibility.

Consult your investment adviser before making any investment decisions

https://klse.i3investor.com/blogs/share4all/175292.jsp