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Monday, September 25, 2017

[转贴] 集中火力 make it count - 止凡

Author: Tan KW | Publish date: Mon, 25 Sep 2017, 10:11 AM
2017年9月24日星期日

有空整理電郵信箱,發現兩年前一封讀者寫來的電郵,有一些點子值得討論,而且讀到時很親切,不如放上來分享。



CF兄電郵:

Hello止凡,之前已經收到你的email,但是忘記回覆你。簡單講下我的財務計劃,小弟只是剛畢業,出來工作不足一年。我本人都極崇尚價值投資法,正在看intelligent investor。所以投資的方式都會以長線為主。

幫屋企人進行了樓宇按揭套現,現在大約有1.5M現金,完全用盡父母的按揭額度。由於本人於銀行工作,對按揭極為熟悉,完全明白當中的風險。這筆「彈藥」將會作為父母的退休金(未計MPF),所以只能作極保守投資。

所以我想盡量於市場出現錯價,大熊市當中,才全力進攻。學股神講,Concentrate your fire, Do not scatter your shot, Make it count.

現在主要的Portfolio,亦是止凡的愛股939。大約10萬元市值左右。最近期留意到656的動作,相信這支股票以後可能有機會成為新巴郡。所以打算在適當時候吸納,作長線投資。

回到開首的題目,可能港股或一眾內銀股 並不偏貴,但亦同本人心目中的「海嘯價」有距離。對於本人現時的能力,分析同選股應該還有很多地方需要學習。但我覺得最能增加勝算和回報,應該於股票或樓市抱有絕望氣氛時,同時市場上亦缺少足夠資金及流動性的時刻。

如果這筆資金屬於本人的話,由於本人尚年輕,以後還會有幾十年的cash inflow,所以能承受較大風險。現時雖未到「海嘯價」,但應該算是入市良機了。

另外,衷心多謝止凡一路以來的分享,你實在是我投資路上一大啓蒙老師。覺得自己好幸運於大學時期已經學到一身受用的價值投資法。能夠完全Utilise自己的時間值。


後記(止凡):

回看這篇電郵,其實很有興趣想知道今天CF兄的狀況如何,這兩年來股市高低不定,未知他有否在對的時間做對事情呢?

這篇文章中有一個很有感受的概念,就是「集中火力 make it count」。這點我十分認同,尤其當資產累積到一定規模,很多動作都不想去做。

例如早前的渣打供股,其實當時感到如此的供股安排,又轉新任管理層,供股後短線股價上升機會不低,這是財技派的想法。不過細想一下,賺這些錢,短線投機,能賺多少呢?一成?三成?始終不可能必賺,自己作投機所投入的金額不會多,投入10萬博賺3萬嗎?不可能集中火力,賺三兩萬飲茶?無大興趣。

另外,明白市場先生近年的操作方法,買入超過100支股票,每支買入一點,每支都有折讓值,以機率取勝。曾經有另一位blogger也有提到,這樣的操作「有肉食」嗎?個別一兩支股票大升,但由於每支股票注碼不會太高,所以不會make it count。不過從機率看,100多支股票之中,每年有三兩支股票因價值回歸而大升,整體年回報可以不錯,長遠或許做到施洛斯的15%以上的回報。但打散100多支股票,要管理分析不是容易,早知這不是自己杯茶。

之前透露過,賣掉香港電視賺六位數字,見《與香港電視分手》。有朋友看見後頗羨慕,我則指這是四年多的投資,這利潤在組合佔比一點也不算多,這個買賣價差連我平日的恒常股息收入也算不上,不可能算是什麼代表作。

就這句「集中火力 make it count」,很難於投機項目中表現出來,因為這不是令自己心安的投資。搞好多動作,可能做到一些成功感或刺激感出來,在悶悶的投資路途上多一點話題,但我的主力還是放到非常悶的地方。很喜歡CF兄提到的操作,於「海嘯價」時大大啖咬下去,平日就悶悶地食息,這操作令我最為心安。

話說回頭,集中火力之同時,也要好好注意風險。尤其集中度去到只有單一投資項目,你必需要非常之了解它,更有不錯的控制權,否則出事會有很大影響。



http://cpleung826.blogspot.my/2017/09/make-it-count.html

CIMB Research sees strong performance from AirAsia in H2 of 2017

Author: Tan KW | Publish date: Mon, 25 Sep 2017, 10:04 AM

KUALA LUMPUR: CIMB Equities Research views AirAsia’s strategy to entrench itself strongly in Malaysia is a brilliant move to edge out its rivals.

It said on Monday with an absolute decline in total domestic capacity from KLIA, but no signs of a decline in domestic passenger numbers, it expects AirAsia’s domestic yields and domestic load factors to be very strong in 2H17F.

“AirAsia is taking advantage of its competitors’ pullback by expanding its fleet by 10 planes in Malaysia in 2H17F after adding none in the first six months,” it said.

To recap, CIMB Research said Malaysia Airport’s passenger traffic numbers have resumed growth since mid-2016, after two consecutive years of low single-digit growth.

So far in 2017F, the growth has been driven primarily by international passenger traffic growth (+14.5% year-on-year for January to August), against slower growth for domestic passengers (+6% year-on-year for January to August).

“This is explained by the weak ringgit encouraging inbound tourists into Malaysia, as well the mature state of the domestic travel market,” it said.

CIMB Research said passenger traffic at KLIA’s Main Terminal Building (MTB), where full-service carriers like Malaysia Airlines (MAS) and Malindo are based, have seen a dramatic decline in passenger traffic growth from May 2017 onwards.

Traffic growth slowed down to 12%-13% year-on-year, from more than 20% year-on-year growth in the preceding months, while in July and Aug 2017, MTB passenger traffic growth slowed down to the low single-digits.

There are two reasons for this. First, Malindo rebranded itself as a full-service airline and moved to KLIA MTB from 15 Mar 2016, so the year-on-year slowdown in passenger traffic growth at MTB was due partly to the high base effect.

The second reason is that MAS and Malindo have both cut domestic capacity from KLIA. Malindo deployed around 25,000 one-way domestic seats/week from KLIA at the start of 2017, but this declined to about 15,000 seats in early-Apr, and is expected to remain at this level for the rest of the year.

MAS started 2017 with about 75,000 domestic seats/week from KLIA but with its capacity cuts in July-September, the airline is expected to end the year with 62,000 seats. The cuts may be related to MAS’s plans to return six B737-800s to lessors by 4Q17F.

As a result, KLIA MTB’s domestic passenger traffic saw a massive 20% year-on-year contraction for two consecutive months in July and August.

Altogether MAS and Malindo are expected to reduce their domestic capacities from KLIA by 23,000 seats/week by end-2017F, or a substantial drop of 23% measured from the start of the year.

“Conversely, AirAsia started this year with 102,000 domestic weekly seats, but is expected to end 2017F with around 114,000 seats/week from KLIA, an increase of 12,000 seats/week.

“As a result, AirAsia’s market share of domestic seats from KLIA may rise from 51% to 60% by end-2017F,” it said.

Read more at http://www.thestar.com.my/business/business-news/2017/09/25/cimb-research-sees-strong-performance-from-airasia-in-h2-of-2017/

Oil and Gas - Start of Oil Bull? Maybe Not

Author:   |    Publish date: 


Highlights

  • Explaining recent oil price rally. Oil price has recovered from US$45/bbl in June to US$56/bbl in mid Sep due to disruptions in US energy market caused by Hurricane Harvey. Severity and duration of outages are still uncertain at this juncture but US refinery runs was down week on week on 1 st Sept 2017, resulting drawdown in US crude inventory. US production was also down by 40,000 bbls/day from July to August.
  • Is this a structural recovery? Market sentiment has improved on the O&G sector given the recent rally in share prices. However, we believe the oil supply disruption is not permanent while fundamentals will revert back to what we expect earlier (still supply surplus). According to EIA, some pipelines are beginning to restart operations and oil producers are starting to ramp up productions, pointing to recovery of production growth in US latest by start of 2018.
  • Oil price target maintained. Ytd Brent oil prices have averaged at US$51.2//bbl. Given that we expect stronger prices in 2H17 due to seasonality, we believe our target of average US$55/bbl remains intact. Recent events (hurricane & supply disruptions) have brought about optimism in the market, but we believe everything will revert back to normal and market will still be oversupplied in 2018.
  • RM5bn MCM contracts to be awarded. As opposed to earlier expectation of Modification, Construction & Maintenance (MCM) contract award by Petronas worth circa RM5bn to be awarded in 2Q17, we believe announcement of contract to be soon (in matter of weeks) as Petronas finalizes the contract split. Major beneficiaries of the contract award consist of Dayang (BUY; TP: RM 1.20), Deleum (Not Rated), Petra Energy (Not Rated) & Sapura Energy (Hold; TP: RM1.59). At this juncture, split of contract award among contractors are unknown but we believe Dayang and Sapura Energy are the contenders for the bigger portion of the contract value due to their superior operational track record.

Risks

  • Further plunge in oil prices.
  • Slower than expected recovery in O&G activities.

Rating

NEUTRAL (  )
  • Call maintained on the sector with oil prices expected to be still range bound. Award of MCM contracts will improve sentiment on the sector but we do not foresee significant structural improvement in the sector and oversupply still persists in the sector.

Valuation

  • Picks:
1. DAYANG (BUY; TP: RM1.42) – on attractive valuation with potential value unlocking corporate exercise expected to refloat Perdana shares.
Source: Hong Leong Investment Bank Research - 25 Sept 2017

[转贴] 中国南海1100米海底 发现“裸露”可燃冰

Author: Tan KW | Publish date: Mon, 25 Sep 2017, 09:54 AM
2017年9月23日




(北京23日讯)中国研发开采可燃冰又有新突破。继中国于今年5月首次在南中国海海域成功开采可燃冰后,央视周五报道,科学家团队近日在南中国海海域,首次发现裸露在海底海床上的天然气水合物(即可燃冰),而发现地点位处1100米深的深海海底。

报道说,中国远洋综合科考船“科学号”,近日透过由无人潜水器携带、用于鉴定辨析物质分子结构的深海激光拉曼光谱探针,在南中国海两个约在1100米海底的检测站点,探测到裸露在海床的可燃冰。



中国南中国海海底发现可燃冰 。(网络图)

两处均是在有丰富有机碳氢化合物流体渗漏的海底冷泉区域,其中一处是在冷泉化能极端生物群落中,裸露可燃冰可作动态合成分解为其提供甲烷等能量源;另一站点则位于一个活动的冷泉喷口内壁。

可燃冰作为洁净燃烧替代能源,中国一直投入巨大资源作开采研发。全球目前已知可燃冰藏量约2100万亿立方米,可供人类使用1000年。可燃冰的开采要面对包括巨大水压等大难题,今年5月中国成为全球首个在海域成功试采可燃冰、并能由此连续稳定生产天然气的国家,

新闻来源:综合报道

http://www.enanyang.my/news/20170923/中国南海1100米海底-发现裸露可燃冰/

[转贴] 機器人會取代人力?大量運用自動化的亞馬遜可不這麼想

Author: Tan KW | Publish date: Mon, 25 Sep 2017, 09:48 AM

機器人究竟會不會取代人力?這是一個爭論許久的話題,有些企業認為大量員工被科技所取代是必然的結果,但也有企業不同意這個說法,像是廣泛運用自動化的亞馬遜(Amazon),就從不逼迫自己在人力和機器人間做選擇。

身為全球知名的電子商務龍頭,亞馬遜對自動化的渴望和引進效率並不會有人懷疑。早在 2012 年,亞馬遜就收購了專門製造倉儲用機器人的 Kiva Systems,並改名為 Amazon Robotics 後,開始在自家倉庫大量引進機器人。

就連美國總統川普都在日前公開指責亞馬遜的電商事業發展,已威脅到傳統零售業的工作機會,但事實真是如此嗎?
持續增長的人力需求

紐約時報指出,其實在令人驚豔、持續增長的業績下,亞馬遜的人力需求不停增加,日前亞馬遜就宣布,將在北美開設第二個總部,預計將增加 5 萬個新工作機會。

即使與其他科技大廠相比,亞馬遜的人力需求仍十分驚人,在全球勞動力需求上,亞馬遜提供的工作機會是微軟(Microsoft)的 3 倍,是 Facebook 的 18 倍。為了滿足越來越多的客戶訂單,亞馬遜儼然搖身一變成為一台招聘機器。

從亞馬遜的角度來看,自動化與機器人並不是用來取代人力,而是讓員工負責任務改變的途徑。除了讓倉庫工作變得較不乏味,實質的稅收也能減少,甚至還可大幅增加多方面的效率,讓客戶收到包裹的速度更快,滿意度更高。

《Rise of the Robots》一書的作者 Martin Ford 認為,如果亞馬遜沒有運用自動化技術,一定沒有辦法達到現在的營運成本,也沒有辦法替顧客降低購物成本,人們收到貨物的時間可能要更久。

(Source:Flickr/Scott Lewis CC BY 2.0)

亞馬遜的倉庫中,人和機器人每天都很好的合作,機器人從貨架上搬運數百公斤的商品貨物,人類員工則閱讀電腦螢幕上的指示,從貨架中取出產品放入塑膠收納箱,再由輸送帶交至另一群員工處包裝。

負責運營管理的行政總裁 Dave Clark 表示,亞馬遜希望單調的任務交由機器執行,人們則負責處理需要思考的工作。

「每次面對的都是全新的事物,你尋找商品,你檢查商品,你的注意力得以集中,我認為這是很重要的。」

除了自家製造的倉儲機器人之外,亞馬遜也導入外部廠商的機器人,來協助處理許多事務。在這些機器人的協助下,勞工除了免去搬運沉重貨物的麻煩,也減少了需要走動的距離,讓身體的疲憊感隨之減少。

機器人也讓貨架得以集中,讓存貨空間變大,這意味著顧客能有更多商品選擇。

導入機器人同時,亞馬遜也會在公司內部開設課程,協助作業員了解如何操作機器人,在課程的安排下,許多人都成功轉型為機器人操作者。

Clark 表示,沒有任何人因為機器人加入被解雇,亞馬遜替那些工作被替代的員工找到新的職位。

「人們沒有離開去任何地方。」
自動化最終將取代人力?

只是,當未來新型態的機器人到來時,還會是一樣的景象嗎?

以現在工廠的工作來說,在一些特定任務,人類員工的表現還是遠勝於機器人,但許多新創企業和研究團隊正在努力克服剩下的技術障礙,亞馬遜甚至也有贊助類似的比賽,鼓勵更多的應用創新。

Ford 認為,亞馬遜減少招聘人力的決定,只是時間上的問題。

「我認為這項技術最終會讓倉儲人力需求大幅減少,並不是說工作消失會是一夜之間的事,亞馬遜可能不會裁員,但創造就業機會的速度或許會逐漸減慢。」


(Source:Flickr/JBLM PAO CC BY 2.0)

但亞馬遜認為,倉庫的人力需求增長將會持續。Clark 表示,從歷史來看,自動化提高生產力,也在某些程度上提高了消費者需求,進而創造出更多就業機會。即使亞馬遜的倉庫變得更高科技,工人也會持續在其中工作。

「自動化會摧毀工作機會只是個神話。」

雖然不知道未來會如何發展,但對像 Nissa Scott 這樣的員工來說,機器人的到來無疑開啟了另一扇窗。

過去在亞馬遜紐澤西的倉庫,Scott 面前總是堆疊著各種收納箱,10 小時的輪班中,經常必須搬運這些重達 11 公斤的箱子來回移動,這並不是令人興奮的工作。

但隨著亞馬遜大量引進機器手臂,現在 Scott「晉升」了,她的新工作是管理數台機器人,在必要時候排除故障,並確保工作流程無誤。

「對我來說,這是在倉庫工作能碰到最具挑戰性的事情,工作內容的重複性並不高。」
As Amazon Pushes Forward With Robots, Workers Find New Roles

(首圖來源:shutterstock)

http://blog.moneydj.com/news/2017/09/15/%e6%a9%9f%e5%99%a8%e4%ba%ba%e6%9c%83%e5%8f%96%e4%bb%a3%e4%ba%ba%e5%8a%9b%ef%bc%9f%e5%a4%a7%e9%87%8f%e9%81%8b%e7%94%a8%e8%87%aa%e5%8b%95%e5%8c%96%e7%9a%84%e4%ba%9e%e9%a6%ac%e9%81%9c%e5%8f%af%e4%b8%8d/

[转贴] 金狮工业LIONIND – 狮子背后的2大隐忧 - RH Research

Author: Tan KW | Publish date: Mon, 25 Sep 2017, 09:47 AM

LIONIND透过旗下99%持有的Amsteel 和Antara主要从事长钢生产业务,在本地经营3家炼钢厂,分别座落在雪州巴生、雪州万津和柔佛巴西古当。其产品包括钢坯 (Billets)、钢筋 (Steel Bars) 和钢丝桿 (Wire Rods) ,主要应用在建筑和工业领域。

同时,Antara在纳闽经营一家热铁块 (Hot Briquetted Iron) 厂,涉足钢铁上游领域。其产品由高纯度铁矿石制成,被评为世界上最有质量的热铁块之一,主要供应给炼铁、炼钢和铸造应用的钢厂。

截至FY17Q4,LIONIND的关联公司 (Associate Company) 投资额为RM816m。其中的RM700m属于Parkson,而其余的RM120m左右属于其他关联公司,包括49%持股的Mergexcel Property。

Parkson目前的股价为RM0.555,市值为RM607m。若以持股的23%计算,LIONIND在Parkson的投资额仅剩下RM140m。按着来看,集团在过去几年未对Parkson的投资作出减值动作 (Impairment)。其账面上的Parkson投资额为每股RM2.78,目前已经贬值80%。若管理层有意根据市值作出减值动作,LIONIND应该拨备RM560m。

其实,这会计处理手法非常主观 (Subjective)。一些公司选择用市值为会计标准,而一些则选择用公司净资产 (NTA)为会计标准。由于Parkson连年亏损,导致股价几乎无价值可言,管理层选择使用净资产为标准,而非根据市值。这就犹如评价一块土地,当中也有许多方法。其一是根据每方尺,其二是根据附近的产业价值来判断,其三就是根据评价师的经验。

回到业绩上,Parkson的盈利表现对于LIONIND的影响不小。Parkson在FY17Q2交出RM73m盈利,带动LIONIND关联公司收入转亏为盈,提升至RM18m。然而,Parkson的盈利主要归功于一次性脱售收益。若剔除全部非核心盈利,Parkson实际上蒙受RM58m亏损。其业务已有一段时间没有起色,未来预计将延续之前的亏损,并继续拖累LIONIND的盈利表现。

另一方面,由于全球石墨电极 (Graphite Electrode) 在近期短缺,本地其他使用电弧炉的钢铁业者有可能将面临生产限制。石墨电极是个在电弧炉中进行加热熔化的导体,用于生产优质的钢铁产品。根据中国报导,石墨电极的价格在过去两个月持续走高和短缺,导致部分钢铁厂被迫重新编排生产时间表。其价格从年初的每吨1.8万元左右上涨至每吨6.4万元左右,涨幅高达256%。

其实,LIONIND的钢铁业务在过去4个季度的盈利表现皆起伏不定,如下:
> Q1 – RM12m (2.7%)
> Q2 – RM47m (8.6%)
> Q3 – RM64m (9.5%)
> Q4 – RM2m (0.2%)

由于原料价格走高以及钢筋价格下滑,集团的Q4盈利表现低迷。然而,本专页却对此不理解。到底什么因素导致LIONIND的赚幅暴跌至0.2%?这些价格的波动还不至于导致亏损

此外,另一家长钢公司SSTEEL的表现也是如此,还蒙受亏损。巧合的是,LIONIND和SSTEEL都是使用电弧炉。因此,本专页有理由相信石墨电极的短缺及涨价对这两家公司有不小的影响。

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Systech banking on recent buys for growth, to secure bid for large projects

Author: TechnoBrokers | Publish date: Mon, 25 Sep 2017, 08:11 AM

SHARES of ACE Market-listed Systech Bhd have been climbing steadily in the past year, hitting an all-time high of 43.5 sen on Aug 1, with traded volumes surging to be among the top-most active counters in the past two weeks.

Perhaps, it is the company’s recent slew of acquisitions, although not well-publicised, which caught the eye of investors. The acquisitions will enable Systech to expand its solutions offering, geographical reach and clientele - positioning itself as a key technology player.

“If you look at it, our M&As [mergers and acquisitions] are to enable us to build a complete ecosystem, with each pillar in place; from principally offering proprietary software solutions to cybersecurity, and now towards mailing services and eventually e-logistics,”

Nonetheless, some market observers may deem Systech’s valuation, at 51 times price-to-earnings (PE) multiple, expensive. This is based on its 2017 financial year ended March 31 (FY17) earnings per share (EPS) of 0.86 sen.

Tan, however, is not too concerned.

“We believe there is still a lot of growth potential for the group going forward, in all aspects of our business. In fact, we are still aiming for a double-digit growth [in our net profit and revenue] this FY18 and FY19,” he says.

This is driven by a ramp-up in its cybersecurity business (under its 51%-owned SysArmy Sdn Bhd), continued growth in its existing e-business segment, as well as additional revenue from its two recent acquisitions – Postlink Pte Ltd and Rofarez Solutions Sdn Bhd.


Deal accretive

Shareholders have recently approved Systech’s 51% stake acquisition in Postlink – which is in the business of annual report mailing and publication mailing services – for RM9.8 mil.

This will be satisfied via a combination of RM1.6 mil in cash, and issuance of 30.4 million new Systech shares at 27 sen per share – which is at a slight premium to what its shares were trading at in March when the announcement was made.

Meanwhile, the share issuance represents almost 10% of the group’s present share base.

The deal was done at a PE multiple of 16.7 times, and EV/Ebitda of 12.1 times.

Tan, who presently controls 57.2% in Systech via Leinet Technology, says this proves a better option than incurring borrowings for the acquisition.

“When the deal was negotiated, Systech’s PE was approximately 70 times. Having a larger capitalisation for the group will also be beneficial in light of its strategic business plans moving forward,” he explains.

As at March 31, Systech stood in a net cash position of RM1.1 mil, after deducting total borrowings amounting to RM6.2 mil.


Postlink poised to grow

Postlink’s existing business is poised to grow, Tan says, following the Singapore Stock Exchange’s (SGX) requirement that all listed companies must publish a sustainability report at least once a year, no later than five months after the end of each financial year.

The new requirements take effect for any financial year ending on or after Dec 31, 2017. For the first year, firms will be given up to 12 months from the end of the financial year to publish their reports.

Companies may choose to include the sustainability report in their annual reports or to issue it separately. Currently, a corporate social responsibility report is not mandatory.

As such, Postlink will likely to gain from having to mail out two reports.

What’s also exciting for the company is the trend towards e-annual reports.

“Gone will be the days where annual reports are sent in CDs. Our role is to provide software solutions to convert annual reports into a digitised format where it is more interactive [with embedded videos and such] while ensuring a secured electronic delivery to shareholders,” Tan says.

The company targets to roll this out by the middle of next year, with plans to offer e-annual reports to Malaysian-listed companies at a later stage.

“Once that is done, we then look towards digitising proxy forms where shareholders can fill them and sent it back electronically to the registrar. This saves time and effort.

“And our final phase is e-logistics. We intend to develop a platform-based solution to take advantage of the inefficiency in the mailing and logistics industry, particularly in the delivery of physical goods for third party e-commerce platforms,” he adds.


Rofarez to complement existing business

Last year, Postlink handled 264 of 757 listed companies on the SGX, giving it a market share of 35%.

It is worth noting Postlink had been profit-making the past three years. In FY16, it reported a net profit of RM1.1 mil on the back of RM11.4 mil revenue.

On May 25, Systech acquired a 49.9% stake in Rofarez Solutions – which delivers cloud-based financial solutions to businesses under the brand name “DappleWorks” – for RM800,000.

While Systech’s recognition from Rofarez’s FY16 net profit of RM158,000 is minimal (at RM79,000 – around 3% of its current earnings), Tan says the gem lies in Rofarez’s capability to complement Systech’s existing business while allowing it to broaden its product offerings.

“Rofarez’s expertise lies in platform building and one of the biggest concerns of platform companies today is cybersecurity. Imagine if this platform is certified by SysArmy, it will provide reliability to the platform and potentially open up more cross-sell opportunities for us,” he explains.

In five years, Tan expects Systech to derive one third each of its revenue from e-business solutions, cybersecurity, and e-logistics.


Cybersecurity revenue could double

In the immediate term, Systech’s growth will come from its computer security service provider, SysArmy.

Tan expects cybersecurity to contribute up to half of its revenue in FY18, from 20% in FY17. Systech posted a higher net profit of RM2.73 mil in FY17 from RM1.23 mil in the previous year on the back of higher revenue of RM15.23 mil versus RM11.34 mil.

Systech’s core e-business solutions segment – providing proprietary software solutions to mostly direct selling, multi-level marketing and retail companies – accounted for the remaining revenue of RM12 mil.

As Tan also anticipates this segment to post a growth, albeit at a slower pace, this means its cybersecurity revenue this year could double from RM3.1 mil in FY17.

“We are bidding for a few large projects for SysArmy, which we are hopeful to secure some by Q2 [FY18] this year. Ever since the breakout of WannaCry, we have seen an increase in demand for our cybersecurity services,” Tan says.

He adds, SysArmy has been working closely with the relevant authorities, along with CyberSecurity Malaysia to provide awareness campaign to its clients as well as the public.

CyberSecurity Malaysia is the national cybersecurity specialist centre under the purview of the Ministry of Science, Technology and Innovation.

That said, while traction has been rising, Tan acknowledges more could be done and the take-up rate could be faster, as corporates are still not as receptive.

Overall, Tan expects its net margin to hover at 20%.

Systech’s earnings came down in FY16, having invested heavily into its cybersecurity division, which it acquired in 2015. Net margins fell from almost 30% in FY15 to 11% in FY16 but rebounded to 17% in FY17.