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Software & IT Services / Software & IT Services / IT Services & Consulting DETAILED STOCK REPORT
Report Date: 08 February 2017
Last Close Avg Daily Vol 52-Week High Trailing PE Annual Div ROE LTG Forecast 1-Mo Return
0.25 (MYR) 2.1M 0.27 37.4 0.03 5.7% -- 6.4%
08 February 2017 Market Cap 52-Week Low Forward PE Dividend Yield Annual Rev Inst Own 3-Mo Return
MALAYSIA Exchange
78M 0.14 -- 12.0% 14M 3.2% 42.9%
AVERAGE SCORE
NEUTRAL OUTLOOK: SYSTECH's current Score Averages
score is relatively in-line with the market. Software & IT Services Group: 3.5 Small Market Cap: 5.2
Software & IT Services Sector: 3.5 FBM KLCI Index: 6.7
Average Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend
Positive KRONO 7 5 6 6 6
GRANFLO 4 4 3 3 4
Neutral SYSTECH 2 3 2 3 4
NEXGRAM 6 4 2 4 3
Negative
EAH 1 2 1 1 1
FEB-2014 FEB-2015 FEB-2016 FEB-2017
BUSINESS SUMMARY
Systech Berhad. Systech Bhd is an investment holding company. The Company operates through two segments: e-business solution and cyber
security solution. The e-business solution segment consists of software research and development, provision of the related software services and trade
in software related peripherals. The cyber security solution segment is engaged in the provision of cyber security software and hardware systems, and
the related application and consultancy services. The Company's intermediate and ultimate holding companies are Leinet Technology Berhad and IKL
Resources Sdn. Bhd. respectively. The Company's subsidiaries include Syscatech Sdn Bhd and Mobysys Sdn Bhd, which are engaged in software
research and development, provision of the related software services and trade in software related peripherals, and SysArmy Sdn Bhd, which is
engaged in the provision of cyber security software and hardware systems, and the related application and consultancy services.
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SYSTECH (SYSTECH-KU)
Software & IT Services / Software & IT Services / IT Services & Consulting DETAILED STOCK REPORT
Report Date: 08 February 2017
INDICATOR COMPONENTS
The AVERAGE SCORE combines the quantitative analysis of five widely-used investment decision making tools: Earnings,
Fundamental, Relative Valuation, Risk, and Price Momentum. A simple average of the underlying component ratings is normally
distributed to rank stocks on a 1-10 scale (10 being awarded to the most favorable). These factors may be evaluated differently using
alternative methodologies and the importance of individual factors varies across industries, market capitalization and investment styles.
Additional criteria should always by used to evaluate a stock.
PEER COMPANIES
DATAPRP Dataprep Holdings EAH EA Holdings
APPASIA AppAsia NEXGRAM Nexgram Holdings
CUSCAPI Cuscapi Berhad PANPAGE Panpages
GRANFLO Grand-Flo MSNIAGA Mesiniaga
KRONO Kronologi Asia NOVAMSC Nova MSC
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SYSTECH (SYSTECH-KU)
Software & IT Services / Software & IT Services / IT Services & Consulting DETAILED STOCK REPORT
Report Date: 08 February 2017
This company does not currently meet the data Earnings Score Averages
requirements to calculate a score for this Software & IT Services Group: 3.7 Small Market Cap: 5.0
component. Software & IT Services Sector: 3.7 FBM KLCI Index: 6.4
Earnings Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend
Positive EAH NR NR NR NR NR
GRANFLO NR NR NR NR NR
Neutral KRONO NR NR NR NR NR
NEXGRAM NR NR NR NR NR
Negative
SYSTECH NR NR NR NR NR
FEB-2014 FEB-2015 FEB-2016 FEB-2017
EARNINGS INDICATORS
Earnings Surprises Estimate Revisions Recommendation Changes
(33.3% weight) (33.3% weight) (33.3% weight)
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SYSTECH (SYSTECH-KU)
Software & IT Services / Software & IT Services / IT Services & Consulting DETAILED STOCK REPORT
Report Date: 08 February 2017
NA NA NA NA
EARNINGS SURPRISES
Comparing a company's actual earnings to the mean expectation of Surprise Detail (Last 6 Periods)
analysts results in a difference referred to as a 'positive' or 'negative'
surprise. Research has shown that when a company reports a Surprise Announce Period End Actual Mean Surprise
surprise, it is often followed by more of the same surprise type. Type Date Date EPS EPS (%)
Surprise Summary (Last 12 Quarters)
Surprise Type Amount Percent There are no earnings surprises during this time period.
Positive Quarters (> 2%) 0 --
Negative Quarters (< -2%) 0 --
In-Line Quarters (within 2%) 0 --
ANNUAL REVENUE
A pattern of increasing sales in Actuals Estimates
conjunction with a rising EPS may
influence a buy recommendation, while NA NA
flat or falling sales and faltering
earnings may explain a sell Mean -- --
recommendation. A rising EPS with flat Annual revenue data is not available High -- --
or falling sales may result from
increased cost efficiency and margins, Low -- --
rather than market expansion. This Forecasted Growth -- --
chart shows the sales forecast trend of # of Analysts -- --
all analysts and the highest and lowest
projections for the current and next NA NA NA NA
fiscal year.
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SYSTECH (SYSTECH-KU)
Software & IT Services / Software & IT Services / IT Services & Consulting DETAILED STOCK REPORT
Report Date: 08 February 2017
FUNDAMENTAL
NEUTRAL OUTLOOK: Fundamentals relatively Fundamental Score Averages
in-line with the market. Software & IT Services Group: 4.3 Small Market Cap: 5.2
Software & IT Services Sector: 4.3 FBM KLCI Index: 7.0
Q1 Q2 Q3 Q4
Fundamental Score Trend Peers 2016 2016 2016 2016 Current 3Y Trend
SYSTECH 6 6 6 3 7
Positive
GRANFLO 7 8 5 4 3
Neutral KRONO 2 3 2 2 3
Negative EAH NR NR NR NR 2
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 NEXGRAM 4 4 1 2 2
2014 2015 2016
FUNDAMENTAL INDICATORS
Profitability Debt Earnings Quality Dividend
(25% weight) (25% weight) (25% weight) (25% weight)
SYSTE
SYSTE
KRONO
EAH NEXGR
GRANF
GRANF EAH GRANF
NEXGR
SYSTE GRANF
KRONO
EAH KRONO SYSTE
NEXGR
EAH
KRONO
NEXGR
Revenue Growth 27.3% Current Ratio 5.3 Oper. Cash Yield 1.4% Dividend Growth -66.7%
For year over year For interim period For latest 12 months For year over year
ending 09-2016 ending 09-2016 ending 09-2016 ending 09-2016
Gross Margin 61.8% Debt-to-Capital 14.9% Accruals -2.9% Dividend Payout 29.9%
For latest 12 months For annual period For latest 12 months For latest 12 months
ending 09-2016 ending 03-2016 ending 09-2016 ending 09-2016
Return On Equity 5.7% Interest Funding 4.6% Days Sales In Inv. -- Dividend Coverage 2.2
For interim period For interim period For annual period For annual period
ending 09-2016 ending 06-2016 ending -- ending 03-2016
Net Margin 15.5% Interest Coverage 13.6 Days Sales In Rec. 55.6 Current Div. Yield 12.0%
For latest 12 months For interim period For annual period For latest 12 months
ending 09-2016 ending 09-2016 ending 03-2015 ending 02-2017
HIGHLIGHTS
- Systech currently has a Fundamental Rating of 7, which is significantly - Systech currently has a Fundamental Rating of 7, which is significantly
more bullish than the Software & IT Services industry group average more bullish than the Software & IT Services industry group average
of 4.3. of 4.3.
- The company's gross margin has been higher than its industry group - The company's gross margin has been higher than its industry group
average for each of the past five years. average for each of the past five years.
- The company's current ratio has been higher than its industry group
average for each of the past five years.
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SYSTECH (SYSTECH-KU)
Software & IT Services / Software & IT Services / IT Services & Consulting DETAILED STOCK REPORT
Report Date: 08 February 2017
RELATIVE VALUATION
NEGATIVE OUTLOOK: Multiples significantly Relative Valuation Score Averages
above the market or the stock's historic norms. Software & IT Services Group: 4.7 Small Market Cap: 5.8
Software & IT Services Sector: 4.7 FBM KLCI Index: 2.9
Relative Valuation Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend
Positive GRANFLO 8 8 10 10 10
NEXGRAM 9 10 10 10 10
Neutral KRONO 10 7 5 5 5
EAH 3 3 3 4 4
Negative
SYSTECH 1 1 1 1 1
FEB-2014 FEB-2015 FEB-2016 FEB-2017
GRANFLO
GRANFLO
NEXGRAM
NEXGRAM
KRONO
KRONO
EAH
SYSTECH
SYSTECH
EAH EAH
GRANFLO
KRONO
NEXGRAM
SYSTECH
Price to Sales 6.9 Trailing PE 37.4 Forward PE --
5-Yr Average 5.7 5-Yr Average 26.4 5-Yr Average --
Rel. to 5-Yr Avg. 21% Premium Rel. to 5-Yr Avg. 41% Premium Rel. to 5-Yr Avg. --
FBM KLCI Index 2.8 FBM KLCI Index 17.4 FBM KLCI Index 17.8
Rel. to FBM KLCI >100% Premium Rel. to FBM KLCI >100% Premium Rel. to FBM KLCI --
HIGHLIGHTS
- Systech currently has a Relative Valuation Rating of 1 which is - Systech currently has a Relative Valuation Rating of 1 which is
significantly below the FTSE BURSA MALAYSIA COMPOSITE index significantly below the FTSE BURSA MALAYSIA COMPOSITE index
average rating of 5.5. average rating of 5.5.
- SYSTECH's Price to Sales ratio and Trailing P/E are both significantly - SYSTECH's Price to Sales ratio and Trailing P/E are both significantly
above (more expensive than) their 5-year averages. above (more expensive than) their 5-year averages.
Page 6 of 11
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SYSTECH (SYSTECH-KU)
Software & IT Services / Software & IT Services / IT Services & Consulting DETAILED STOCK REPORT
Report Date: 08 February 2017
Page 7 of 11
2017 Thomson Reuters. All rights reserved.
SYSTECH (SYSTECH-KU)
Software & IT Services / Software & IT Services / IT Services & Consulting DETAILED STOCK REPORT
Report Date: 08 February 2017
RISK
NEGATIVE OUTLOOK: Variable return patterns Risk Score Averages
(high volatility). Software & IT Services Group: 2.6 Small Market Cap: 4.8
Software & IT Services Sector: 2.6 FBM KLCI Index: 9.1
Risk Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend
Positive KRONO 4 4 4 4 4
GRANFLO 3 5 3 3 3
Neutral EAH 1 2 1 1 2
SYSTECH 2 2 2 2 2
Negative
NEXGRAM 3 1 1 1 1
FEB-2014 FEB-2015 FEB-2016 FEB-2017
RISK INDICATORS
Magnitude Of Returns Volatility Beta (1-year) Correlation
(25% weight) (25% weight) (25% weight) (25% weight)
KRONO
EAH
SYSTE
GRANF GRANF
GRANF
KRONO
Daily Returns (Last 90 Days) Standard Deviation Beta vs. FBM KLCI 1.15 Correlation vs. FBM KLCI
Best 13.5% Last 90 Days 3.73 Positive Days Only 0.51 Last 90 Days 14%
Worst -9.8% Last 60 Months 20.56 Negative Days Only 1.76 Last 60 Months 10%
Monthly Returns (Last 60 Months) Intra-Day Swing (Last 90 Days) Beta vs. Group 0.79 Correlation vs. Group
Best 130.8% Average 5.0% Positive Days Only 0.69 Last 90 Days 41%
Worst -32.7% Largest 14.3% Negative Days Only 1.01 Last 60 Months 29%
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SYSTECH (SYSTECH-KU)
Software & IT Services / Software & IT Services / IT Services & Consulting DETAILED STOCK REPORT
Report Date: 08 February 2017
Price Momentum Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend
Positive KRONO 8 7 10 10 10
SYSTECH 5 9 9 8 9
Neutral GRANFLO 2 1 1 1 3
NEXGRAM 6 3 4 4 3
Negative
EAH 4 3 1 1 1
FEB-2014 FEB-2015 FEB-2016 FEB-2017
KRONO GRANFLO
SYSTECH KRONO
NEXGRAM
SYSTECH
EAH
NEXGRAM
GRANFLO
EAH
Relative Strength Indicator (Scale from 1 to 100) Average Monthly Return (Last 10 Years)
SYSTECH Industry Avg FEB MAR APR
Last 1 Month 59 55 Company Avg -10.8% -4.6% 47.2%
Last 3 Months 58 51 Industry Avg 2.3% 0.9% 4.7%
Last 6 Months 54 50 Industry Rank 7 of 54 37 of 54 10 of 54
PRICE PERFORMANCE
Daily close prices are used to calculate the SYSTECH SYSTECH FBM KLCI
performance of the stock as compared to a
FBM KLCI Close Price (08/02/17) 0.25 1,689
relevant index over five time periods.
52-Week High 0.27 1,728
6.4%
1-Week 52-Week Low 0.14 1,615
1%
Page 9 of 11
2017 Thomson Reuters. All rights reserved.
SYSTECH (SYSTECH-KU)
Software & IT Services / Software & IT Services / IT Services & Consulting DETAILED STOCK REPORT
Report Date: 08 February 2017
Page 10 of 11
2017 Thomson Reuters. All rights reserved.
SYSTECH (SYSTECH-KU)
Software & IT Services / Software & IT Services / IT Services & Consulting DETAILED STOCK REPORT
Report Date: 08 February 2017
Valuation Multiples
The valuation multiples provide the Trailing P/E, Forward P/E, Forward PEG, and
Price to Sales for the company and the S&P 500 index average. In addition, a
comparison of the current companys values to its 5-year average and an industry
average are presented. A discount occurs when the companys ratio is valued more
favorably (lower) than that to which it is compared.
Risk
The Risk Rating displays stocks on a scale of 1 to 10 with 10 being awarded to the
least risky stocks. It is derived by looking at a series of long-term (5-year) and
short-term (90-day) stock performance measures including volatility, magnitude of
returns, beta, and correlation. Each factor is equally weighted. Then, equal deciles
are used to rank each stock across the market. A stock needs to have at least two
of the four risk factors in order to receive a score.
Magnitude of Returns The best / worst daily returns in the past 90 days and the
best / worst monthly returns in the past 60 months.
Volatility The standard deviation of the stock price over the last 90 days and
last 60 months, along with the average and largest intra-day stock swing.
Beta Measures the tendency of a securitys returns to respond to swings in the
market, based on the beta of the company versus the relevant index.
Correlation Determines how closely the returns of the stock and the relevant
index move together, measured over the last 90 days and last 60 months.
Risk Analysis
Price analysis for the company and the relevant index is provided over two time
periods. Daily analysis is provided for the last 90 days, whereas monthly statistics
are used for the last 60 months.
Price Momentum
The Price Momentum Rating is based on a combination of two technical
performance factors: relative strength (70% weight) and seasonality (30% weight).
After the weightings are considered to combine individual factors, equal deciles are
used to rank each stock across the market on a scale of 1 to 10, with 10 being most
favorable. A stock needs to have data for the relative strength factor in order to
receive a score.
Relative Strength The relative strength of the company for the last 1 month, 3
months, and 6 months on a scale of 1 to 100.
Seasonality The average monthly return (price performance) for the current
month and next 2 months for the company and industry, over the past 10 years.
A lower industry rank indicates a higher return.
Price Performance
Daily close prices are used to calculate the price performance of the stock. The
performance of the relevant index is also displayed as a means of comparison.
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