Business

Published: Thursday August 9, 2012 MYT 9:12:00 AM

Kenanga Research: ECS ICT outlook remains bright


KUALA LUMPUR: Kenanga Investment Research said the prospects for ECS ICT remains bright, underpinned by robust IT spending and encouraging market trends.

It said on Thursday the lower consumer demand for Notebook PCs has mitigated by the increasing popularity of Tablet PCs and Ultrabook PCs.

“Recently, the group has started to distribute the Eclipse 4G smartphone to its IT channel retailers. We believe this will provide additional revenue stream to the group in future,” the research house said.

Kenanga Research said it was maintaining the target price for ECS at RM1.70, based on an unchanged targeted FY12 PER of 6.1 times (+2 standard deviation).

It said ECS ICT's H1, 2012 net profit of RM13.7mil accounted for 40.8% of its and the street's full year estimate. It said this was within expectations as it expected a stronger second half due mainly to more products launching and seasonality factor.

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