News CENSOF has been awarded a new project by Perbadanan
Tabung Pendidikan Tinggi Nasional (PTPTN) for the upgrading of the latter’s
financial management system worth RM1.7m over a 2-year period commencing from 5
February 2013 until 4 February 2015.
Comments According to management, the project is an
asset management solution for PTPTN with an estimated gross margin of 40%,
implying contributions of a minimum RM310k and RM340k in gross profit a year to
FY13 and FY14 respectively.
We believe the
contract of RM1.7m (the only one thus far in FY13) is considered a minor
contract and it fell within our assumption of a total RM13.2m worth of
contracts expected to be awarded to the company in 1Q13.
We are, nonetheless,
positive on the announcement as CENSOF has now expanded its clientele base to
another government agency (i.e. PTPTN) from its existing clients namely
PERKESO, MoF, KWAP and LHDN.
Outlook Remains bright, underpinned by continued projects/contracts
flow from the various government agencies.
Forecast No
changes to our FY12E-13E earnings.
Rating MAINTAIN OUTPERFORM
Valuation Maintaining our TP of RM0.59 based on a Fwd.
PER of 12.2x on our FY13E EPS of 4.8 sen.
Risks Failure to secure more projects
Reduced government
spending on ICT e.g. on upgrade of
online payment systems, etc.
Source: Kenanga
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