ECS ICT Berhad - Under the Radar

• ECS is expected to pay dividends of at least 8.4 sen/shr in FY12, equivalent to a net yield of 5.6%. As at 30 Jun 2012, it had net cash of MYR42.3m (38 sen/share).
• Valuations are undemanding, trading at 5.3x FY12 and 5.1x FY13 PER vs an average PER of 7.5x for Bursa Small Cap stocks.
• We believe ECS would eventually be rerated to at least 6x FY13 peer PER, translating to a TP of MYR1.78 (+19% upside).

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Source: Maybank Research - 10 Sept 2012