Stock Digest - Supercomnet Technologies Bhd - Award Winning Medical Devices And Cable Specialist

Established in 1991, Supercomnet Technologies Bhd (SCOMNET) has now evolved into a global award-winning medical devices and cable specialist. The group is embarking into a relatively large-scale expansion on its existing 4 factory buildings that will boost built-up area to more than 30,000 sqm upon completion in coming years. We initiate coverage on SCOMNET with a BUY call and fair value of RM1.51, based on a target P/E multiple of 38.0x (which is in line with the 5-year historical average) to FY23f diluted EPS of 4.0 sen.