Brighter prospects for Scicom in FY19
KOTA KINABALU: Scicom (MSC) Bhd’s (Scicom) prospects for the financial year 2019 (FY19) have been viewed positively by analysts as they are assured by its ability to replenish its orders while its Cambodia tourism project is also expected to kick-in soon.
Following an analysts briefing, the research arm of MIDF Amanah Investment Bhd (MIDF Research) said it is reassured of Scicom’s ability to replenish its orders for the business processes outsourcing (BPO) segment in FY19.
“We understand that prospective new agreements with estimated job values of RM110 million are in the pipeline and would last the company for about two years.
“Recall that Scicom was supposed to roll out new projects in FY18 for its multinational company customer but the plan had been deferred due to political uncertainties.
“With the removal of these uncertainties post-election, we believe that the project implementation would take place in FY19 and is expected to contribute positively to Scicom’s top and bottomline,” it added.
It noted that the number of student visa application has been subdued prior to Malaysia’s 14th General Election.
However, following the conclusion of the event, the number of foreign students applying to study in Malaysia has picked up again compared to 4QFY18.
Aside from that, the research team highlighted that the Cambodia tourism project is also expected to kick start in FY19 following the launching delay because of Cambodia’s general election.
“The tourism project is expected to be launched there when the local political dust settles. Earnings contribution from the project may also start in the first half of FY19 (1HFY19),” it added.
MIDF Research further highlighted that there are more potential new businesses in the horizon for Scicom.
“On top of the existing businesses, Scicom is also working on complementary businesses such as digital marketing that may help to boost its existing business.
“On top of that it continues to explore e-government solutions opportunities in developing countries like Nepal, South Africa and Sri Lanka,” it added.