SCICOM (0099)

SCICOM (MSC) BHD

Scicom was incorporated in 1997 in Malaysia and is a PLC listed on the main board of Bursa. Scicom has been a PLC since 2005. Their centres in KL, Colombo & Jakarta service both large local conglomerates, multi-national clients & governments.

Scicom suite of services include integrated solutions in Customer Contact Management (BPO), Education and Training, Government Outsourcing Services & E-Commerce.

Scicom talks, emails, tweets, chats, processes & interacts with millions of customers annually. Over 100mil distinct transactions resolve, enhance, provide value & serves their clients customers in over 39 languages.

Their centres in M'sia, Sri Lanka & Indonesia, linked and fully redundant via state of the art multi-channel technology platforms, serves a discerning multi-national client base. Scicom provides unique solutions in service excellence across Asia Pacific.

Scicom is a global CRM Consulting, Technology services, Education and Outsourcing company.

With domain experience, and comprehensive capabilities across all industries and business functions, Scicom partners with clients to help them focus on their customers so that they become high-performance businesses both in the public and private sectors.

Their "Customer Focused Business" strategy builds on their expertise in consulting, technology, education and outsourcing to help clients perform at the highest levels so they can create sustainable value for their customers. Using their industry knowledge, service-offering expertise, technical capability and by improving  operational performance and delivery, scicom help clients increase revenues from their existing customers, retain their current customer base and proactively acquire new customers.

Scicom have long-term partnerships with global clients and governments and work with organizations of all sizes.

Scicom’s Key Differentiating factors are:

• Extensive vertical domain Expertise
• A Focus on business transformation outsourcing.
• Commitment to the long-term development of our employees.
• A Proven and experienced management team.
• Providing Innovative solutions for evolving business needs

The Business Pitch Acquiring new customers by designing and using new and future ready channels. Retain current clientele by utilizing electronic campaigns to keep customers focused on your brand and your services. Develop all categories of the customer base so that they bring value by spending more money with your brand and your services

The Scicom Advantage Process Driven Culture Value Based Management Operational Excellence Cost Savings Year on Year

• With steady earnings coming from its BPO segment and e-government service contract, which now includes language schools and public higher learning institutions.
• The EMGS contract is progressing smoothly and is complemented by stable earnings from the Business Process Outsourcing (BPO) segment. While the initial number of visa applications from language-school students is minimal as some adjustment time is required.
• Scicom’s BPO pipeline was robust and that it was in the final stages of contract bids of around RM50m.
• Scicom’s diverse client base should minimize the risk from Malaysia’s economic and political concerns as management has guided that more than 50% of its revenue is derived from clients whose business operations are outside of Malaysia and from various industry segments.
• Although the current weak Ringgit is an advantage to overseas clients, 85% of Scicom’s receivables are in Ringgit. Thus, while a weaker Ringgit is positive for the company. Scicom is also looking to expand its presence in the e-government services sector as negotiations on several regional contracts are on-going.

Scicom have its strong growth prospects, sound financial position (ungeared net cash position of RM26m as of 3QFY15) and FY15-17E dividend yields of 4.5-5%.

Affin Hwang target price given for 12mth is RM 2.39

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