Good morning.
Today, we feature a note on HeiTech Padu Berhad in our FundTech Radar – 19th February 2019. HTPADU is a global information technology systems and technology service provider that specializes in developing and providing information and communication technology (ICT) systems and infrastructure for public and private sectors. As at FY17, HTPADU’s sales were made up of 98% local sales.
Fundamental Stance
· HTPADU has been running its business at a loss.
· Its net gearing ratio declined to 0.50x in 3QFY18 (vs. 0.66x in 2QFY18).
· It has not obtained any contracts from the government pertaining to the Star Online article dated 18th Jan 2019 on the title “Quick Take: Heitech Padu jumps 25% on foray into Govt E-Services”.
· Its portal myPay, which will be launched next month, is set to offer services including payment of summonses, student loans, and local taxes such as assessment and quit rent. One of its subsidiaries, Dapat has obtained the necessary consent from the relevant government agencies.
· The recent contracts awarded by LHDN and Ministry of Health will contribute positively to HTPADU over the next 2-3 years.
· The major shareholders, Dato’ Sri Mohd Hilmey and PNB, have reduced their stakes in HTPADU by 0.5% and 5.5% respectively during 1QFY19.
Technical Front
Any upside could be capped near RM0.90-1.00.
Resistances: 0.90/1.00/1.16
Supports: 0.76/0.73/0.68
The above information is extracted from CIMB Research Report. For the full research reports, outlook and disclaimers, please logon to your account on www.itradecimb.com.my and click on <Research> Tab under Malaysia.
This FundTech Radar report is intended for educational purposes only. It represents a preliminary assessment of the subject company, and does not represent initiation into CIMB's coverage universe. It does not carry investment ratings and CIMB does not commit to regular updates on an ongoing basis.
19th Feb 2019
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