Stock Name: CENSOF
Company Name: CENSOF HOLDINGS BERHAD
Company Name: CENSOF HOLDINGS BERHAD
| Research House: MIDF | Price Call: BUY | Target Price: 0.58 |
Showing posts with label CENSOF. Show all posts
Showing posts with label CENSOF. Show all posts
April 24, 2013
Censof's long-term outlook to remain intact
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
August 23, 2012
Earnings Below Expectations
Stock Name: CENSOF
Company Name: CENSOF HOLDINGS BERHAD
Company Name: CENSOF HOLDINGS BERHAD
| Research House: TA | Price Call: SELL | Target Price: 0.35 |
April 20, 2012
Stock Overview - CENSOF - 20 Apr 2012
Stock Name: CENSOF
Company Name: CENTURY SOFTWARE HOLDINGS BHD
CENSOF ( 5195 : 0.445 ) : Target raised to 0.52
Description
Application softwares
Resistance : 0.52 0.54
Support : 0.425
RSI of 50
RSI is recovering
STOCHASTIC
It has started to swing upwards
TREND INDICATOR
Comment
On the 18/4/2012 buy recommendation, the upside target has been raised to 0.52, from 0.47. Technicals are on an early buy signal, indicating further upward push
Trading Strategy
Buy. Stop loss is at 0.425
Source:Jupiter Securities Research 20 April 2012
Company Name: CENTURY SOFTWARE HOLDINGS BHD
| Research House: JUPITER | Price Call: BUY | Target Price: 0.52 |
CENSOF ( 5195 : 0.445 ) : Target raised to 0.52
Description
Application softwares
Resistance : 0.52 0.54
Support : 0.425
RSI of 50
RSI is recovering
STOCHASTIC
It has started to swing upwards
TREND INDICATOR
Comment
On the 18/4/2012 buy recommendation, the upside target has been raised to 0.52, from 0.47. Technicals are on an early buy signal, indicating further upward push
Trading Strategy
Buy. Stop loss is at 0.425
Source:Jupiter Securities Research 20 April 2012
April 19, 2012
CENSOF (FV RM0.57- BUY) Corporate News Flash: Second Haul in a Week
Stock Name: CENSOF
Company Name: CENTURY SOFTWARE HOLDINGS BHD
Company Name: CENTURY SOFTWARE HOLDINGS BHD
| Research House: OSK | Price Call: BUY | Target Price: 0.57 |
THE BUZZ
After securing twocontracts worth a total of RM33.5m from Pertubuhan Keselamatan Sosial(Perkeso) last week, Century Software's (CSHB) wholly-owned subsidiary, CenturySoftware (M) SB, has landed two more contracts totaling RM5.6m from Lembaga Hasil Dalam Negeri (LHDN)to provide maintenance services as well as upgrade the latter's StandardAccounting System for Government Agencies (SAGA) for a period of 2-3 years. Itwill also supply and install the related hardware and peripherals to ensure thesuccess of the assigned contracts.
OUR TAKE
No alterations to our forecasts but positive overall. We are positive with this 2ndcontract announcement in a week given that this beefs up the company'sorderbook to about RM74.1m. However, we are keeping our current FY12/FY13earnings forecasts of RM20.3m/RM21.6m since we had earlier factored in somecontract wins from its identifiable prospective projects of RM36.5m, with asuccess rate of 80%.
Maintain BUYrecommendation at RM0.57. Given the slight pullback in the company's shareprice last week, we think this presentsa good opportunity for investors to accumulate CSHB shares. Based on ourcalculations, the company offers an attractive dividend yield of 4% atonly a FY12/FY13 PER of 7.2x/6.8x, inaddition to a capital appreciation ofsome 34% to our fair value (FV) of RM0.57, which is based on 9x FY13 PER.Compared to the high PER valuation of 20x and 2% dividend yield of MYEG, its closest listed proxy on Bursa Malaysia, the company makes an even more attractive
investmentproposition. We maintain our BUYrecommendation, based on the company's coup in securing some RM39.1m worth ofcontracts within a week, as well as the potential of landing new projects worthsome RM36.5m.
Source: OSK188
Stock Overview - CENSOF - 18 Apr 2012
Stock Name: CENSOF
Company Name: CENTURY SOFTWARE HOLDINGS BHD
CENSOF ( 5195 : 0.42 ) : Targeting 0.47/stop loss 0.40
Description
Application softwares
Resistance : 0.47
Support : 0.41
RSI of 42
RSI has stabilised
STOCHASTIC
It is recovering from its oversold level
TREND INDICATOR
Comment
It is in for a range bound trading. As the current level is on the lower boundary of the range, it is expected to bounce back to the upper range of 0.47
Trading Strategy
Buy. Stop loss is at 0.40
Source:Jupiter Securities Research 18 April 2012
Company Name: CENTURY SOFTWARE HOLDINGS BHD
| Research House: JUPITER | Price Call: BUY | Target Price: 0.47 |
CENSOF ( 5195 : 0.42 ) : Targeting 0.47/stop loss 0.40
Description
Application softwares
Resistance : 0.47
Support : 0.41
RSI of 42
RSI has stabilised
STOCHASTIC
It is recovering from its oversold level
TREND INDICATOR
Comment
It is in for a range bound trading. As the current level is on the lower boundary of the range, it is expected to bounce back to the upper range of 0.47
Trading Strategy
Buy. Stop loss is at 0.40
Source:Jupiter Securities Research 18 April 2012
February 28, 2012
CENSOF (FV RM0.47 - NEUTRAL) FY11 Results Review: Seeking New Growth Avenues
Stock Name: CENSOF
Company Name: CENTURY SOFTWARE HOLDINGS BHD
Company Name: CENTURY SOFTWARE HOLDINGS BHD
| Research House: OSK | Price Call: BUY | Target Price: 0.47 |
Century Software (CSHB)'s FY11 earnings of RM9.5m were belowour and street estimates. However, newly acquired PT Praisindo Teknologi fared well during the quarter and we seemargins at the group level improving moving forward. During yesterday's analyst briefing, management said it is evaluating more M&As and bidding for several projectswhich may boost its profits. We are revising upwards our FV to RM0.47 by ascribing a 9x FY12 PER. We maintain our NEUTRAL recommendation on thestock.
Below estimates.CSHB's FY11 earnings missed our estimates, making up only 63% and 65% of our and consensus'full-year forecasts respectively. This could be attributed to the 98% y-o-ysurge in depreciation and amortization charges to RM2.7m. On top of that, thelower earnings were partly due to the acceleration of certain major projects involvinghigher opex. However, the company's top-line swelled by a robust 36.1% y-o-y toRM43.3m, as its Financial Management Software Solutionsdivision (FMSS)'s revenue was boosted by the RM22.5m Outcome Based Budgeting(OBB) project from the Ministry ofFinance it secured in the middle of last year. We understand that a major portionof the contract was invoiced in FY11.
High margins at IMSdivision. Newly acquired Indonesian Investment Management Solution (IMS)arm, PT Praisindo Teknologi, which started to contribute in 4Q, registered stellarnumbers as it achieved highly lucrative PBT margins of 72%. We are upbeat the thecontribution from this division will somewhat help to cushion the margincompression at the group level.
Potential M&As. During the analyst briefing, management alsoindicated that it is eyeing furtherexpansion after successfully acquiring its Indonesian unit. We gather that thecompany is in preliminary talks withseveral local and international companies in relation to M&As to take launch the company's into its next legof growth. Management also said itis bidding for some domestic and foreignprojects which may potentially enhanceits profits.
Maintain NEUTRAL,revising FV to RM0.47. We are retaining our FY12 financial forecasts for now as wehad earlier factored in the full-year growth in the IMS segment, as wellas introduce our FY13 forecasts. We arerevising higher our 8x FY12 PER multiple to 9x to reflect thepotential upside from M&As sought by management, which may help improve trading sentiment. We maintain ourNEUTRAL recommendation on the stock, with an adjusted FV of RM0.47.
Source: OSK188
June 6, 2011
CENSOF - Century's fair value lifted at OSK
Stock Name: CENSOF
Company Name: CENTURY SOFTWARE HOLDINGS BHD
Research House: OSK
Company Name: CENTURY SOFTWARE HOLDINGS BHD
Research House: OSK
Century Software Holdings Bhd, a Malaysian software company, rose to a record in Kuala Lumpur trading after OSK Research Sdn Bhd said it increased its fair value to 98 sen.
The stock gained 4 per cent to 78.5 sen at 9:16 a.m. local time. -- Bloomberg
The stock gained 4 per cent to 78.5 sen at 9:16 a.m. local time. -- Bloomberg
April 6, 2011
CENSOF - Century Software is small in size, but big in potential
Stock Name: CENSOF
Company Name: CENTURY SOFTWARE HOLDINGS BHD
Research House: OSK
Century Software Holdings Bhd
(April 6, RM1.41)
Initiate coverage with buy call at RM1.38 with fair value RM1.53: Century Software Holdings (CSHB) is a provider of financial management software and solutions with a near-monopoly on providing these solutions to federal statutory bodies (FSB). CSHB looks set to benefit from the government's push for a standard accounting system for government agencies (Saga) which will utilise compliant financial management software solutions (FMSS). Some 42% or 49 FSBs have yet to instal the Saga system, which potentially represents a market valued of RM50 million per year for CSHB to tap into. The government has so far recognised only two FMSS, namely CSHB's Saga Century and Konsortium Jaya's Saga 3 solutions.
CSHB could also look to penetrate the local councils, state statutory bodies, and government-linked companies. Although the government has yet to mandate Saga-compliance here, we opine that uniformity across accounting systems makes more sense over the long run. CSHB is still largely non-existent in these agencies and we believe this represents a potential market worth RM60 million per year.
Demand for payment aggregation software is likely to swell with increasing Internet banking. According to Bank Negara Malaysia, the volume of Internet transactions in Malaysia grew 40% to 60% per year over the last three years. The subscriber base has also jumped approximately 30% per year over the last five years, with 9.4 million registered for Internet banking facilities as at 2010. As payment aggregation software is able to simplify and increase the speed of making payments and receiving collection, CSHB should benefit from the gradual migration to e-payments.
T-Melmax Sdn Bhd (TMX) recently launched its e-Bayaran portal, a one-stop business-to-government website for businesses to make payments to government bodies. Malaysia had over 550,000 small- and medium-sized enterprises as at 2009, with over four million companies registered with the Companies Commission of Malaysia. Assuming a conservative 20% take-up rate, this could translate into annual revenues of RM15 million from monthly payments to the Employees Provident Fund, the Social Security Organisation and the Inland Revenue Department. Imputing a margin of 30%, this could boost CSHB's profit-after-tax by RM4.5 million a year. ' OSK Research, April 6
This article appeared in The Edge Financial Daily, April 7, 2011.
Company Name: CENTURY SOFTWARE HOLDINGS BHD
Research House: OSK
Century Software Holdings Bhd
(April 6, RM1.41)
Initiate coverage with buy call at RM1.38 with fair value RM1.53: Century Software Holdings (CSHB) is a provider of financial management software and solutions with a near-monopoly on providing these solutions to federal statutory bodies (FSB). CSHB looks set to benefit from the government's push for a standard accounting system for government agencies (Saga) which will utilise compliant financial management software solutions (FMSS). Some 42% or 49 FSBs have yet to instal the Saga system, which potentially represents a market valued of RM50 million per year for CSHB to tap into. The government has so far recognised only two FMSS, namely CSHB's Saga Century and Konsortium Jaya's Saga 3 solutions.
CSHB could also look to penetrate the local councils, state statutory bodies, and government-linked companies. Although the government has yet to mandate Saga-compliance here, we opine that uniformity across accounting systems makes more sense over the long run. CSHB is still largely non-existent in these agencies and we believe this represents a potential market worth RM60 million per year.
Demand for payment aggregation software is likely to swell with increasing Internet banking. According to Bank Negara Malaysia, the volume of Internet transactions in Malaysia grew 40% to 60% per year over the last three years. The subscriber base has also jumped approximately 30% per year over the last five years, with 9.4 million registered for Internet banking facilities as at 2010. As payment aggregation software is able to simplify and increase the speed of making payments and receiving collection, CSHB should benefit from the gradual migration to e-payments.
T-Melmax Sdn Bhd (TMX) recently launched its e-Bayaran portal, a one-stop business-to-government website for businesses to make payments to government bodies. Malaysia had over 550,000 small- and medium-sized enterprises as at 2009, with over four million companies registered with the Companies Commission of Malaysia. Assuming a conservative 20% take-up rate, this could translate into annual revenues of RM15 million from monthly payments to the Employees Provident Fund, the Social Security Organisation and the Inland Revenue Department. Imputing a margin of 30%, this could boost CSHB's profit-after-tax by RM4.5 million a year. ' OSK Research, April 6
This article appeared in The Edge Financial Daily, April 7, 2011.
CENSOF - Century Software a 'buy': OSK
Stock Name: CENSOF
Company Name: CENTURY SOFTWARE HOLDINGS BHD
Research House: OSK
Company Name: CENTURY SOFTWARE HOLDINGS BHD
Research House: OSK
Century Software Holdings Bhd, a Malaysian software company, rose to a one-week high after OSK Research Sdn Bhd rated the stock new “buy” to reflect its earnings growth potential.
The stock advanced 1.5 per cent to RM1.40 at 9:44 a.m. in Kuala Lumpur trading, set for its highest close since March 30.
The “fair value” for the stock is RM1.53, Kong Heng Siong, a Kuala Lumpur-based analyst at OSK, wrote in a report today. -- Bloomberg
The stock advanced 1.5 per cent to RM1.40 at 9:44 a.m. in Kuala Lumpur trading, set for its highest close since March 30.
The “fair value” for the stock is RM1.53, Kong Heng Siong, a Kuala Lumpur-based analyst at OSK, wrote in a report today. -- Bloomberg
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