New Risk • Jun 24
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: RM402.3m (US$97.1m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (RM402.3m market cap, or US$97.1m). Upcoming Dividend • Jun 22
Upcoming dividend of RM0.01 per share Eligible shareholders must have bought the stock before 29 June 2026. Payment date: 20 July 2026. Payout ratio and cash payout ratio are on the higher end at 80% and 79% respectively. Trailing yield: 4.2%. Lower than top quartile of Malaysian dividend payers (5.4%). Higher than average of industry peers (2.1%). Announcement • Jun 13
Supercomnet Technologies Berhad Approves Final Single-Tier Dividend for the Financial Year Ended 31 December 2025 Supercomnet Technologies Berhad, at the AGM held on 12 June 2026 approved Final Single-Tier Dividend of 1.0 sen per share for the financial year ended 31 December 2025. Major Estimate Revision • May 28
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from RM161.4m to RM150.3m. EPS estimate also fell from RM0.035 per share to RM0.031 per share. Net income forecast to grow 13% next year vs 37% growth forecast for Electrical industry in Malaysia. Consensus price target down from RM0.82 to RM0.68. Share price fell 7.3% to RM0.51 over the past week. Reported Earnings • May 23
First quarter 2026 earnings released: EPS: RM0.007 (vs RM0.008 in 1Q 2025) First quarter 2026 results: EPS: RM0.007 (down from RM0.008 in 1Q 2025). Revenue: RM29.6m (down 13% from 1Q 2025). Net income: RM5.66m (down 22% from 1Q 2025). Profit margin: 19% (down from 21% in 1Q 2025). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Electrical industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has fallen by 26% per year, which means it is performing significantly worse than earnings. Declared Dividend • May 01
Final dividend of RM0.01 announced Dividend of RM0.01 is the same as last year. Ex-date: 29th June 2026 Payment date: 20th July 2026 Dividend yield will be 3.6%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by earnings (69% earnings payout ratio) but not covered by cash flows (109% cash payout ratio). The dividend has increased by an average of 18% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 32% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 29
Supercomnet Technologies Berhad, Annual General Meeting, Jun 12, 2026 Supercomnet Technologies Berhad, Annual General Meeting, Jun 12, 2026, at 10:00 Singapore Standard Time. Location: purest hotel, no. a-2, jalan indah 1, taman sejati indah, sungai petani central, sungai petani, kedah, Malaysia New Risk • Feb 26
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 24% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (110% cash payout ratio). Large one-off items impacting financial results. Reported Earnings • Feb 25
Full year 2025 earnings released: EPS: RM0.03 (vs RM0.037 in FY 2024) Full year 2025 results: EPS: RM0.03 (down from RM0.037 in FY 2024). Revenue: RM140.1m (down 6.5% from FY 2024). Net income: RM26.0m (down 16% from FY 2024). Profit margin: 19% (down from 21% in FY 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Electrical industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has fallen by 24% per year, which means it is performing significantly worse than earnings. Announcement • Nov 28
Supercomnet Technologies Berhad Announces Interim Single-Tier Dividend for the Financial Year Ending 31 December 2025, Payable on 30 December 2025 Supercomnet Technologies Berhad announced Interim Single-Tier Dividend of 1.1 sen per share for the financial year ending 31 December 2025. The Company's securities will be traded and quoted "Ex - Dividend” as from: 11 December 2025. The last date of lodgment: 12 December 2025. Date Payable: 30 December 2025. Declared Dividend • Nov 26
Dividend of RM0.011 announced Shareholders will receive a dividend of RM0.011. Ex-date: 11th December 2025 Payment date: 30th December 2025 Dividend yield will be 2.7%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by both earnings (28% earnings payout ratio) and cash flows (69% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 7.0% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 25
Third quarter 2025 earnings released: EPS: RM0.009 (vs RM0.007 in 3Q 2024) Third quarter 2025 results: EPS: RM0.009 (up from RM0.007 in 3Q 2024). Revenue: RM37.6m (flat on 3Q 2024). Net income: RM7.72m (up 40% from 3Q 2024). Profit margin: 21% (up from 15% in 3Q 2024). Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Electrical industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has fallen by 24% per year, which means it is performing significantly worse than earnings. Reported Earnings • Aug 27
Second quarter 2025 earnings released: EPS: RM0.007 (vs RM0.01 in 2Q 2024) Second quarter 2025 results: EPS: RM0.007 (down from RM0.01 in 2Q 2024). Revenue: RM37.8m (down 1.2% from 2Q 2024). Net income: RM6.31m (down 25% from 2Q 2024). Profit margin: 17% (down from 22% in 2Q 2024). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electrical industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has fallen by 17% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • Aug 26
Consensus revenue estimates decrease by 10% The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from RM191.1m to RM171.2m. EPS estimate unchanged from RM0.037 per share at last update. Electrical industry in Malaysia expected to see average net income growth of 36% next year. Consensus price target down from RM1.30 to RM1.10. Share price fell 4.8% to RM0.90 over the past week. Upcoming Dividend • Jun 18
Upcoming dividend of RM0.01 per share Eligible shareholders must have bought the stock before 25 June 2025. Payment date: 18 July 2025. Payout ratio is a comfortable 56% but the company is paying out more than the cash it is generating. Trailing yield: 2.0%. Lower than top quartile of Malaysian dividend payers (5.6%). Higher than average of industry peers (1.4%). Announcement • Jun 12
Supercomnet Technologies Berhad Approves Final Single Tier Dividend for Year Ended December 31, 2024 Supercomnet Technologies Berhad in its AGM held on June 12, 2025 approved to declare a Final Single Tier Dividend of 1.0 sen per share for the financial year ended December 31, 2024. Major Estimate Revision • May 30
Consensus revenue estimates fall by 17% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from RM230.3m to RM191.1m. EPS estimate fell from RM0.06 to RM0.045 per share. Net income forecast to grow 36% next year vs 32% growth forecast for Electrical industry in Malaysia. Consensus price target down from RM1.84 to RM1.34. Share price fell 6.7% to RM0.91 over the past week. Price Target Changed • May 26
Price target decreased by 25% to RM1.48 Down from RM1.96, the current price target is an average from 3 analysts. New target price is 59% above last closing price of RM0.93. Stock is down 36% over the past year. The company is forecast to post earnings per share of RM0.051 for next year compared to RM0.037 last year. Reported Earnings • May 24
First quarter 2025 earnings released: EPS: RM0.008 (vs RM0.01 in 1Q 2024) First quarter 2025 results: EPS: RM0.008 (down from RM0.01 in 1Q 2024). Revenue: RM34.0m (down 5.8% from 1Q 2024). Net income: RM7.26m (down 9.8% from 1Q 2024). Profit margin: 21% (down from 22% in 1Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Electrical industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 6% per year and the company’s share price has also fallen by 6% per year. Valuation Update With 7 Day Price Move • May 08
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to RM1.04, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 17x in the Electrical industry in Malaysia. Total loss to shareholders of 8.1% over the past three years. Declared Dividend • May 01
Final dividend of RM0.01 announced Shareholders will receive a dividend of RM0.01. Ex-date: 25th June 2025 Payment date: 18th July 2025 Dividend yield will be 2.2%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by earnings (70% earnings payout ratio) but not covered by cash flows (232% cash payout ratio). The dividend has increased by an average of 23% per year over the past 9 years. However, payments have been volatile during that time. EPS is expected to grow by 97% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 30
Supercomnet Technologies Berhad, Annual General Meeting, Jun 12, 2025 Supercomnet Technologies Berhad, Annual General Meeting, Jun 12, 2025, at 10:00 Singapore Standard Time. Location: purest hotel, no. a-2, jalan indah 1, taman sejati indah, sungai petani central, sungai petani, kedah, Malaysia Announcement • Apr 13
Supercomnet Technologies Berhad Proposes Final Single Tier Dividend for Year Ended December 31, 2024 Supercomnet Technologies Berhad board proposed Final Single Tier Dividend of 1.0 sen per share for the year ended December 31, 2024 to be approved by its shareholders at the forthcoming Thirty-Fifth Annual General Meeting of the Company. However, the entitlement date and date of payment of the aforesaid dividend have yet to be finalized at the moment. New Risk • Mar 09
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 232% Dividend yield: 2.4% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • Mar 01
Full year 2024 earnings released: EPS: RM0.037 (vs RM0.037 in FY 2023) Full year 2024 results: EPS: RM0.037 (in line with FY 2023). Revenue: RM149.9m (up 8.5% from FY 2023). Net income: RM31.3m (up 7.8% from FY 2023). Profit margin: 21% (in line with FY 2023). Revenue is forecast to grow 26% p.a. on average during the next 3 years, compared to a 27% growth forecast for the Electrical industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 6% per year. Major Estimate Revision • Dec 03
Consensus revenue estimates fall by 11% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from RM180.5m to RM161.1m. EPS estimate fell from RM0.042 to RM0.037 per share. Net income forecast to grow 67% next year vs 49% growth forecast for Electrical industry in Malaysia. Consensus price target of RM1.96 unchanged from last update. Share price rose 2.5% to RM1.25 over the past week. Announcement • Nov 29
Supercomnet Technologies Berhad Announces Interim Single-Tier Dividend for the Year Ending December 31, 2024, Payable on December 30, 2024 Supercomnet Technologies Berhad announced Interim Single-Tier Dividend of 1 sen per share for the year ending December 31, 2024. Ex-date is December 11, 2024. Entitlement date is December 12, 2024. Payment date is December 30, 2024. Declared Dividend • Nov 28
Dividend of RM0.01 announced Shareholders will receive a dividend of RM0.01. Ex-date: 11th December 2024 Payment date: 30th December 2024 Dividend yield will be 2.1%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (56% earnings payout ratio) but not covered by cash flows (273% cash payout ratio). The dividend has increased by an average of 20% per year over the past 9 years. However, payments have been volatile during that time. EPS is expected to grow by 114% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 27
Third quarter 2024 earnings released: EPS: RM0.007 (vs RM0.01 in 3Q 2023) Third quarter 2024 results: EPS: RM0.007 (down from RM0.01 in 3Q 2023). Revenue: RM37.3m (up 15% from 3Q 2023). Net income: RM5.51m (down 26% from 3Q 2023). Profit margin: 15% (down from 23% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 36% p.a. on average during the next 3 years, compared to a 33% growth forecast for the Electrical industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 13% per year, which means it is performing significantly worse than earnings. Reported Earnings • Aug 29
Second quarter 2024 earnings released: EPS: RM0.01 (vs RM0.009 in 2Q 2023) Second quarter 2024 results: EPS: RM0.01 (up from RM0.009 in 2Q 2023). Revenue: RM38.3m (up 15% from 2Q 2023). Net income: RM8.41m (up 15% from 2Q 2023). Profit margin: 22% (in line with 2Q 2023). Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Electrical industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Price Target Changed • Aug 05
Price target increased by 8.7% to RM1.62 Up from RM1.49, the current price target is an average from 2 analysts. New target price is 35% above last closing price of RM1.20. Stock is down 9.8% over the past year. The company is forecast to post earnings per share of RM0.046 for next year compared to RM0.037 last year. Board Change • Jul 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent and Non-Executive Chairman Chun Lim was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Jun 19
Upcoming dividend of RM0.015 per share Eligible shareholders must have bought the stock before 24 June 2024. Payment date: 18 July 2024. Payout ratio is a comfortable 52% but the company is paying out more than the cash it is generating. Trailing yield: 1.4%. Lower than top quartile of Malaysian dividend payers (4.5%). In line with average of industry peers (1.4%). Upcoming Dividend • Jun 18
Upcoming dividend of RM0.015 per share Eligible shareholders must have bought the stock before 24 June 2024. Payment date: 18 July 2024. Payout ratio is a comfortable 52% but the company is paying out more than the cash it is generating. Trailing yield: 1.4%. Lower than top quartile of Malaysian dividend payers (4.5%). In line with average of industry peers (1.3%). Reported Earnings • May 21
First quarter 2024 earnings released: EPS: RM0.01 (vs RM0.009 in 1Q 2023) First quarter 2024 results: EPS: RM0.01 (up from RM0.009 in 1Q 2023). Revenue: RM36.1m (down 3.3% from 1Q 2023). Net income: RM8.05m (up 15% from 1Q 2023). Profit margin: 22% (up from 19% in 1Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Electrical industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • May 03
Supercomnet Technologies Berhad, Annual General Meeting, Jun 12, 2024 Supercomnet Technologies Berhad, Annual General Meeting, Jun 12, 2024, at 10:00 Singapore Standard Time. Agenda: To consider receive the Audited Financial Statements for the financial year ended December 31, 2023 together with the reports of the Directors and Auditors thereon;to consider declare a Final Single Tier Dividend of 1.5 sen per share for the financial year ended December 31,2023;to approve the payment of additional Directors’ Fees of RM105,000 for the period from January 1,2024 until June 12, 2024;to approve the payment of additional Directors’ Benefits of RM8,000 for the period from January 1,2024 until June 12, 2024;to approve the payment of Directors’ Fees up to RM644,000 for the period from 34th AGM until the next AGM of the Company;o approve the payment of Directors’ Benefits up to RM44,100 for the period from 34th AGM until the next AGM of the Company;to re-elect the following Directors; and to consider other matters. Declared Dividend • May 01
Final dividend of RM0.015 announced Dividend of RM0.015 is the same as last year. Ex-date: 24th June 2024 Payment date: 18th July 2024 Dividend yield will be 1.3%, which is lower than the industry average of 2.1%. Sustainability & Growth Dividend is covered by both earnings (56% earnings payout ratio) and cash flows (76% cash payout ratio). The dividend has increased by an average of 22% per year over the past 8 years. However, payments have been volatile during that time. EPS is expected to grow by 26% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Apr 24
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to RM1.52, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 23x in the Electrical industry in Malaysia. Total loss to shareholders of 18% over the past three years. Announcement • Mar 30
Supercomnet Technologies Berhad Proposes Final Single Tier Dividend for the Year Ended December 31, 2023 The Board of Directors of SUPERCOMNET TECHNOLOGIES BERHAD has proposed a Final Single Tier Dividend of 1.5 sen per share for the year ended December 31, 2023 to be approved by its shareholders at the forthcoming Thirty-Fourth Annual General Meeting of the Company. Reported Earnings • Feb 29
Full year 2023 earnings released: EPS: RM0.038 (vs RM0.043 in FY 2022) Full year 2023 results: EPS: RM0.038 (down from RM0.043 in FY 2022). Revenue: RM138.1m (down 13% from FY 2022). Net income: RM29.7m (down 9.6% from FY 2022). Profit margin: 22% (in line with FY 2022). Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Electrical industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Announcement • Dec 28
Supercomnet Technologies Berhad Appoints Khor Meow Ling as Independent and Non Executive Director Supercomnet Technologies Berhad announced the appointment of Miss. Khor Meow Ling, aged 54, as Independent and Non Executive Director of the company with effect from 27 December 2023. Qualifications: Degree: Bachelor of Commerce Degree, major in Accounts & Finance University of Melbourne, Australia. Ms. Khor is a member of CA Australia and Malaysia Institute of Accountants. Working experience and occupation: In year 1994, Ms. Khor started her career in the audit department of Ernst and Young, an international public accounting firm. She left E&Y as an Audit Senior and joined Golden Frontier Berhad (GFB) in year 1997 as Group Accountant. She was subsequently promoted to the General Manager of the Corporate and Finance Division in year 2000 before assuming an executive directorship of GFB in year 2001. On 1 April 2011, Ms. Khor was appointed as the Group Managing Director of GFB. Ms. Khor involves in setting of the Group's corporate direction, which she is the key person executing on the disposal of the Group's Vietnam operation in 2011, privatization of GFB in 2012, expansion of operation to central region of Malaysia in year 2013 and southern region of Malaysia in 2014. Ms. Khor is now managing the cash flow and overseeing the day-to-day operations of the group activities. Apart from the above, Ms. Khor is also a director of a consulting firm specialize in market analysis and business coaching since year 2015. On March 20, 2023, Ms. Khor also appointed as the Independent Non-Executive Director of MMS Ventures Berhad. 1. Golden Frontier Berhad, 2. MMS Ventures Berhad. Announcement • Dec 27
Supercomnet Technologies Berhad Appoints Ng Swee Khee as Independent and Non Executive Director Supercomnet Technologies Berhad announced the appointment of Mr. Ng Swee Khee, aged 35 as Independent and Non Executive Director of the company with effect from December 27, 2023. Qualifications: He did Degree in Bachelor of Law (LBB) from University of Adelaide. Mr. Ng was graduated from University of Adelaide, Australia in year 2011 with Bachelor of Law (LLB). Working experience and occupation: In order to pursue his interest in legal field and practice in Malaysia, he attended the CLP course with ATC College in Kuala Lumpur and sat for the mandatory CLP exam in year 2013 and pass the CLP exam in the same year. Mr. Ng was called to the Malaysian Bar in October 19, 2014 and started his practice in Syarikat Ng & Anuar. He covered all types of legal work which include Civil Litigations [contract disputes, debt collection, bankruptcy proceedings, winding up proceedings, family disputes] & Conveyancing practice [all types of tenancies & lease, Corporate Financing, Islamic Financing, Sale and Purchase of Properties, Sale and Purchase of Leases (PKNK)]. Mr. Ng was admitted as a partner of Syarikat Ng & Anuar in January 2021. Major Estimate Revision • Dec 07
Consensus revenue estimates decrease by 11% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from RM165.3m to RM147.2m. EPS estimate unchanged from RM0.038 per share at last update. Electrical industry in Malaysia expected to see average net income growth of 31% next year. Consensus price target down from RM1.68 to RM1.55. Share price was steady at RM1.25 over the past week. Announcement • Nov 30
Supercomnet Technologies Berhad Announces Resignation of Madam Tan Sok Suan as Executive Director Effective November 30, 2023 Supercomnet Technologies Berhad announced resignation of Madam Tan Sok Suan, 44-year-old, female, as executive director effective November 30, 2023. Price Target Changed • Nov 29
Price target decreased by 9.5% to RM1.68 Down from RM1.86, the current price target is an average from 3 analysts. New target price is 33% above last closing price of RM1.26. Stock is down 27% over the past year. The company is forecast to post earnings per share of RM0.038 for next year compared to RM0.043 last year. Reported Earnings • Nov 23
Third quarter 2023 earnings released: EPS: RM0.01 (vs RM0.013 in 3Q 2022) Third quarter 2023 results: EPS: RM0.01 (down from RM0.013 in 3Q 2022). Revenue: RM32.5m (down 28% from 3Q 2022). Net income: RM7.40m (down 27% from 3Q 2022). Profit margin: 23% (in line with 3Q 2022). Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Electrical industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 23
Second quarter 2023 earnings released: EPS: RM0.009 (vs RM0.012 in 2Q 2022) Second quarter 2023 results: EPS: RM0.009 (down from RM0.012 in 2Q 2022). Revenue: RM33.3m (down 16% from 2Q 2022). Net income: RM7.30m (down 22% from 2Q 2022). Profit margin: 22% (down from 24% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Electrical industry in Asia. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. New Risk • Jun 21
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.3% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (113% cash payout ratio). Shareholders have been diluted in the past year (3.3% increase in shares outstanding). Upcoming Dividend • Jun 15
Upcoming dividend of RM0.015 per share at 2.3% yield Eligible shareholders must have bought the stock before 22 June 2023. Payment date: 18 June 2023. Payout ratio is a comfortable 47% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of Malaysian dividend payers (5.4%). In line with average of industry peers (2.4%). Announcement • Jun 09
Supercomnet Technologies Berhad Declares A Final Single Tier Dividend for the Year Ended December 31, 2022 Supercomnet Technologies Berhad declared a Final Single Tier Dividend of 1.5 sen per share for the year ended December 31, 2022, at its AGM, held on 08 June 2023. Reported Earnings • May 30
First quarter 2023 earnings released: EPS: RM0.009 (vs RM0.01 in 1Q 2022) First quarter 2023 results: EPS: RM0.009 (down from RM0.01 in 1Q 2022). Revenue: RM37.4m (up 3.9% from 1Q 2022). Net income: RM7.02m (down 5.2% from 1Q 2022). Profit margin: 19% (down from 21% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Electrical industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 22
Full year 2022 earnings released: EPS: RM0.043 (vs RM0.035 in FY 2021) Full year 2022 results: EPS: RM0.043 (up from RM0.035 in FY 2021). Revenue: RM158.3m (up 10% from FY 2021). Net income: RM33.0m (up 31% from FY 2021). Profit margin: 21% (up from 18% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Electrical industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Dec 03
Supercomnet Technologies Berhad Announces Resignation of Ng Ngoon Weng as Independent and Non Executive Member of Audit Committee Supercomnet Technologies Berhad announced resignation of Ng Ngoon Weng as Independent and Non Executive Member of Audit Committee. Date of change of 1 December 2022. Announcement • Nov 23
Supercomnet Technologies Berhad Announces Interim Single-Tier Dividend for the Year Ending December 31, 2022 Payable on December 22, 2022 Supercomnet Technologies Berhad announced Interim Single-Tier Dividend of 0.5 sen per share for the year ending December 31, 2022 payable on December 22, 2022. Ex-Date is 06 Dec. 2022. Entitlement date is 07 Dec. 2022. Reported Earnings • Nov 23
Third quarter 2022 earnings released: EPS: RM0.013 (vs RM0.009 in 3Q 2021) Third quarter 2022 results: EPS: RM0.013 (up from RM0.009 in 3Q 2021). Revenue: RM45.1m (up 41% from 3Q 2021). Net income: RM10.1m (up 44% from 3Q 2021). Profit margin: 22% (in line with 3Q 2021). Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Electrical industry in Asia. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 30% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent & Non Executive Director Hwui Tee Ang was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Price Target Changed • Sep 29
Price target increased to RM1.91 Up from RM1.78, the current price target is an average from 3 analysts. New target price is 15% above last closing price of RM1.66. Stock is down 6.2% over the past year. The company is forecast to post earnings per share of RM0.041 for next year compared to RM0.035 last year. Reported Earnings • Aug 24
Second quarter 2022 earnings released: EPS: RM0.012 (vs RM0.007 in 2Q 2021) Second quarter 2022 results: EPS: RM0.012 (up from RM0.007 in 2Q 2021). Revenue: RM39.9m (up 22% from 2Q 2021). Net income: RM9.40m (up 74% from 2Q 2021). Profit margin: 24% (up from 17% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 42%, compared to a 51% growth forecast for the Electrical industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Jun 16
Upcoming dividend of RM0.015 per share Eligible shareholders must have bought the stock before 23 June 2022. Payment date: 18 July 2022. Payout ratio is a comfortable 40% and this is well supported by cash flows. Trailing yield: 1.3%. Lower than top quartile of Malaysian dividend payers (4.8%). Lower than average of industry peers (1.6%). Reported Earnings • May 22
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: RM0.01 (up from RM0.007 in 1Q 2021). Revenue: RM36.0m (down 4.2% from 1Q 2021). Net income: RM7.40m (up 52% from 1Q 2021). Profit margin: 21% (up from 13% in 1Q 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 11%. Earnings per share (EPS) also missed analyst estimates by 21%. Over the next year, revenue is forecast to grow 81%, compared to a 41% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 15% per year. Buying Opportunity • May 12
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 29%. The fair value is estimated to be RM1.51, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 20%. For the next 3 years, revenue is forecast to grow by 27% per annum. Earnings is also forecast to grow by 30% per annum over the same time period. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent & Non Executive Director Hwui Ang was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improved over the past week After last week's 17% share price gain to RM1.35, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 19x in the Electrical industry in Asia. Total returns to shareholders of 85% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at RM1.42 per share. Buying Opportunity • Mar 08
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 39%. The fair value is estimated to be RM1.43, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% per annum over the last 3 years. Earnings per share has grown by 19% per annum over the last 3 years. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment deteriorated over the past week After last week's 20% share price decline to RM1.15, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 21x in the Electrical industry in Asia. Total returns to shareholders of 57% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at RM1.43 per share. Price Target Changed • Feb 25
Price target decreased to RM2.20 Down from RM2.44, the current price target is an average from 2 analysts. New target price is 49% above last closing price of RM1.48. Stock is down 19% over the past year. The company is forecast to post earnings per share of RM0.061 for next year compared to RM0.033 last year. Reported Earnings • Feb 23
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: RM0.033 (down from RM0.035 in FY 2020). Revenue: RM145.4m (up 13% from FY 2020). Net income: RM25.3m (up 7.6% from FY 2020). Profit margin: 17% (in line with FY 2020). Revenue missed analyst estimates by 100%. Earnings per share (EPS) also missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 61%, compared to a 48% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 19% per year whereas the company’s share price has increased by 23% per year.