Stock Name: CENSOF
Company Name: CENSOF HOLDINGS BERHAD
Kenanga Research believes Censof Holdings Bhd's long-term outlook will remain intact underpinned by its active tendering of contracts in Indonesia and Malaysia for its financial management software solution segment.
The outlook was being fueled by its continued projects and contract flow from various government agencies, as well as, the possible implementation of good and services tax after the general election.
"In addition, the latest contract award of RM6.1 million by the Inland Revenue Board falls within our assumption as we had previously estimated the group to clinch RM16.9 million worth of contracts in the second quarter of this year," it said in a statement.
While Kenanga Research was positive on the project awarded, it has realigned the latest project flow by lowering Censof's financial year 2013 revenue assumption by 5.1 per cent to RM69.6 million.
"The lower revenue assumption has prompted us to reduce our financial year 2013 net profit by three per cent to RM16.4 million," it said while maintaining the outperform rating on the stock with a lower target price of RM0.56 from RM0.61 previously.-- Bernama
Company Name: CENSOF HOLDINGS BERHAD
| Research House: KENANGA | Price Call: BUY | Target Price: 0.56 |
Kenanga Research believes Censof Holdings Bhd's long-term outlook will remain intact underpinned by its active tendering of contracts in Indonesia and Malaysia for its financial management software solution segment.
The outlook was being fueled by its continued projects and contract flow from various government agencies, as well as, the possible implementation of good and services tax after the general election.
"In addition, the latest contract award of RM6.1 million by the Inland Revenue Board falls within our assumption as we had previously estimated the group to clinch RM16.9 million worth of contracts in the second quarter of this year," it said in a statement.
While Kenanga Research was positive on the project awarded, it has realigned the latest project flow by lowering Censof's financial year 2013 revenue assumption by 5.1 per cent to RM69.6 million.
"The lower revenue assumption has prompted us to reduce our financial year 2013 net profit by three per cent to RM16.4 million," it said while maintaining the outperform rating on the stock with a lower target price of RM0.56 from RM0.61 previously.-- Bernama
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