MORNING CALL:23/8/23 - video Dailymotion

Skip to player Skip to main content Skip to footer

8/22/2023

UOB Kay Hian thinks that Cape EMS has great legs

Category

Transcript

Display full video transcript

00:00 Electronic manufacturing services provider KPMS delivered a solid set of second quarter

00:06 numbers where UOBKKN foresees multiple legs of growth that can supercharge its earnings.

00:11 It has a buy call and a one ringgit 60 target price, implying a possible 34% upside.

00:17 KPMS reported a record core net profit of 15.2 million in the second quarter, bringing

00:21 the first half core net profit to 27.8 million.

00:25 Since the US-China trade war in 2018, CAPE has been benefiting immensely from the trade

00:30 diversion which saw its earnings base swell ninefold.

00:34 As of 2022, CAPE has five anchor customers with strategic portfolio exposure of 60/40

00:40 between the industrial electronic and consumer electronic segments.

00:44 This gives CAPE a balanced growth profile.

00:47 Despite a strong pipeline visibility from its existing key customers, CAPE remains diligent

00:51 in scouting for new prospects that best fit into its mid-volume, high-mix model.

00:56 The group is eyeing at least three new prospects that could see meaningful earnings contribution.

01:02 These products are related to LED lighting and EV charging stations, renewable energy

01:07 devices, IoT control modules, among others.

01:10 UOBKKN calls it an underappreciated gem with a palatable PEG valuation, where its PE is

01:16 at a 10-32% discount to its closest peers.

01:20 Only two houses cover KPMS, according to Bloomberg, the other being Aminvest Research, and both

01:25 have buys.

01:26 The average target price shakes out to RM1.54, which is 35 cent more than its last close.

01:31 [music]

Recommended

1:51

Up next

MORNING CALL:2/2/23

2/1/2024

6:06

NEWS: JF Tech’s Foong Wei Kuong named EY Entrepreneur of the Year

12/18/2023

1:33

MORNING CALL:18/12/23

12/17/2023

6:50

EVENING 5: Low value goods sales tax kicks in Jan 1

12/15/2023

3:19

Jalan Jalan Old Pudu

12/15/2023

1:39

MORNING CALL:15/12/23

12/14/2023

6:43

EVENING 5: Tenaga names Megat Jalaluddin as next president and CEO

12/14/2023

1:40

MORNING CALL:14/12/23

12/13/2023

7:37

EVENING 5: Sime Darby CFO Mustamir takes the helm at UMW

12/13/2023

1:34

MORNING CALL: 13/12/23

12/12/2023

6:55

EVENING 5: PM Anwar shakes up Cabinet

12/12/2023

1:05

NEWS: DAP not the biggest winner in Cabinet rejig, says Loke

12/12/2023

1:18

NEWS: Ramkarpal voluntarily vacated position, says Loke

12/12/2023

0:34

NEWS: Dr Dzul’s experience needed in MoH

12/12/2023

1:13

NEWS: PM splits Communications and Digital Ministry

12/12/2023

0:52

NEWS: EPF CEO confirmed as finance minister II

12/12/2023

10:15

NEWS: Amir Hamzah in, V Sivakumar out in Cabinet rejig

12/12/2023

2:09

MORNING CALL: 12/12/23

12/11/2023

7:03

EVENING 5: EPF CEO tipped to be finance minister II

12/11/2023

2:01

EDGE WEEKLY: No quick solution to old-age poverty ‘time bomb’

12/11/2023

5:43

NEWS: Matrix Concepts shoots for the stars

12/11/2023

1:21

MORNING CALL:11/12/23

12/10/2023

7:01

EVENING 5: YTL Power strikes deal with NVIDIA

12/8/2023

1:59

NEWS: Pacific Senior Living launches Acacia

12/8/2023

0:51

Former Aide Claims She Was Asked to Make a ‘Hit List’ For Trump

9/27/2023