2015年3月11日星期三

转贴-Privasia the next potential dark horse of KLSE?


If you missed Inari during the risen of smartphone and touch screen technology, if you missed Gdex during the revolution of e-commerce, if you missed the potential benefit that could bring from the implementation of GST, or if you missed the boat of Scicom and SMRT as an growing outsourcing company or future education giant, here is another opportunity for you to catch, it resemble a mini Scicom, its share price is like early age of Inari, and its potential to perform is comparable to SMRT. This company is called Privasia (Priva 0123)

This company does about the same business like Scicom, but it doesn’t have the balance sheet as good as Scicom. Despite of this, if look into its future potential, why not? It can be the next Scicom as well, a mini Scicom that has 50% performance from Scicom. Take a look on its business nature, to summarize up, it has 3 major business units:
Privasia: Provide IT outsourcing service, management and consultation on IT operation as well as spend management that includes e-bidding and e-procurement.
Privanet: Provide wireless network service and facilities and mobile related solution.
Ipsat:  Provide broadband and high speed internet service. This unit also provides network service to its client including online education and corporate training.
The outsourcing and business IT management is the core business or Priva, this unit record the most growth for Priva and it’s the contemporary trend of business as a lot of established company now begin to outsource some business operation to third party so that the company can concentrate on their main and core business operation like sales and business expansion. This can be proven by the success of Scicom as an established outsoucing company in Malaysia. In fact, the business operation of Priva is quite similar to Scicom, Priva also has lots of renowned companies as their clients and many of them are the blue chips of KLSE. Some of the clients taken from the website is as:
danone1 pnoinsur1 nationwide1 mkland1 logo-siemens1 kperak1 kastam1 iwk1hartanah1 drb_hicom1 brdb1 c101 cimb1 cmsb1 digi1 airports1airasia1 westports1 unico1 tm1 taylor1 sunway1 royal_selangor1 rhb1
Priva has the mini clone of its business model and customer base to a successful company, what about the financial situation of it? To do a basic check on the company fundamental, take the profitability of the company into consideration first, the revenue for Priva showed strong improvement over the last 10 years, it recovered from loses since year 2009 and subsequently its revenue doubled in 3 years from 2009 to 2012. However, the profit margin is around 9%, not that superior for a multimedia and service based company.  The growth of net profit is rather slow, not at double digit improvement, and that’s what we need to see in the future earning, the growth of net profit!
Priva sheet
Priva BS
For the balance sheet, Priva isn’t possess a very strong balance sheet but at least, it has a healthy one, the current ratio is about 2 and the company gearing is at normal level, although the accumulation earning 19 million is not high enough as the paid up capital is as high as 456 million, but the steady data of the long term asset of Priva accompany with earning growth gives the clue of its sustainable competitive advantage. In addition, the operating cashflow of this company is also moving in a healthy and growing trait for the past 5 years.
Currently Priva is a small and emerging company, the overall financial performance is not as good as other, but to look into its future prospect, the current price provides a very good investment opportunity with attractive return. The IPO price should be the reasonable price for the company’s current situation and even higher if the company keep achieving more significant market position locally and internationally.
Priva 201114
Technical analysis tells the timing for entry, by chart, Priva has a significant awake since October, this can be seen from the opening of Bollinger bands, which means the price is started to move in a range. Second signal is from the smooth movement of RSI, from the past, the RSI is moving with a jerky way and a smooth up of the movement recently can mean the starting of the trending. The volume has began to pick up lately and the trading volume is very big, all this indication give good signal for entry. At current situation, RM0.170 is the resistance of the trend, and it’s positive if the the resistance is to be break and turn into the support for the trend. however, RM0.145 is the cut loss price as this price is the point where the trend is rebound from its nearest correction. Chartian logo Fvcon transparent