Risk factor
Very poor trading liquidity
Profitability factor
Very strong margins and returns
About
Scicom (MSC) Berhad, an investment holding company established in 1997 and headquartered in Kuala Lumpur, Malaysia, operates through two core segments: Outsourcing Services and Education. The company serves an international client base, delivering customer contact center outsourcing solutions across numerous regions, including Malaysia, the Philippines, China, Singapore, Hong Kong, Sri Lanka, and Thailand. Its Outsourcing Services division offers comprehensive business process outsourcing (BPO), encompassing multi-lingual and multi-channel customer care, technical support, consultative sales, and fulfillment services. This segment also develops electronic solutions and applications for areas like online processing, border security, and general software platforms. Additionally, Scicom provides a range of advanced digital and data-driven solutions such as digital experience design, data analytics, e-commerce support, application and system integration, social media management, back-end processing, gov-tech services, biometric solutions, and big data insights. The Education segment is dedicated to providing specialized educational and industrial training, with a particular focus on customer service within various industries, and also facilitates learning through the sale of education vouchers. Scicom's extensive clientele spans a diverse array of sectors, including financial services, airlines, consumer electronics, media and broadcasting, travel and leisure, e-commerce, healthcare, government, and telecommunications.
Company Valuation
Based on key historical and expected multiples, the stock is slightly overvalued relative to its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EBI