RHB has maintained a buy recommendation for Global Invacom Group with a target price of 28 cents, following a visit to the group’s subsidiary Skyware Global (SWG) in US.
RHB’s Jarick Seet noted that a number of “major changes” have taken place since Global Invacom’s acquisition of the troubled SWG in late 2015.
1. A new management team has been put in place
2. A new manufacturing line layout and new processes have been implemented to increase efficiencies
3. New quality and maintenance processes have been added to improve the quality of its output.
SWG says it has already received positive feedback from its customers for the changes made, and is currently in talks with ex-key accounts to resume the supply of satellite dishes. If successful, it would boost Global Invacom’s results for FY2017, Seet said in a note on Monday.
Furthermore, SWG will also be supplying 5,500 1.8 million KU type satellite dishes to a new customer, who is reported to be one of the largest telecommunication providers in the US.
“Production has already started with the supply of about 275 dishes a week [and] we expect this project to be worth about US$3 million ($4 million),” says Seet.
“In addition, the new customer has also expressed positive feedback and that places SWG in the forefront as a supplier for its future business needs. We believe that this customer could potentially be one of SWG’s key customers going forward,” he concludes.
Global Invacom’s shares closed higher at 14.8 cents on Monday.
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RHB’s Jarick Seet noted that a number of “major changes” have taken place since Global Invacom’s acquisition of the troubled SWG in late 2015.
1. A new management team has been put in place
2. A new manufacturing line layout and new processes have been implemented to increase efficiencies
3. New quality and maintenance processes have been added to improve the quality of its output.
SWG says it has already received positive feedback from its customers for the changes made, and is currently in talks with ex-key accounts to resume the supply of satellite dishes. If successful, it would boost Global Invacom’s results for FY2017, Seet said in a note on Monday.
Furthermore, SWG will also be supplying 5,500 1.8 million KU type satellite dishes to a new customer, who is reported to be one of the largest telecommunication providers in the US.
“Production has already started with the supply of about 275 dishes a week [and] we expect this project to be worth about US$3 million ($4 million),” says Seet.
“In addition, the new customer has also expressed positive feedback and that places SWG in the forefront as a supplier for its future business needs. We believe that this customer could potentially be one of SWG’s key customers going forward,” he concludes.
Global Invacom’s shares closed higher at 14.8 cents on Monday.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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