Stock Name: ECS
Company Name: ECS HOLDINGS LIMITED
Research House: UOB KayHian
It notes, ECS has been aggressively expanding brand portfolio and distribution network, while margin expansion schemes will enhance profitability.
Company Name: ECS HOLDINGS LIMITED
Research House: UOB KayHian
UOB KayHian initiates ECS Holdings (E18.SG) at Buy with a $1.18 target, representing a 42.2% upside from the current price.
“In our view, ECS is an attractive proxy to rising IT spending in Asia and provides exposure to a slice of the rapidly expanding Chinese information and communications technology market. In addition, we believe ECS is ripe for a revaluation given its recent high profile additions - distribution rights to Apple's iPhone and iPad, Dell, Lenovo and Samsung products.”
“In our view, ECS is an attractive proxy to rising IT spending in Asia and provides exposure to a slice of the rapidly expanding Chinese information and communications technology market. In addition, we believe ECS is ripe for a revaluation given its recent high profile additions - distribution rights to Apple's iPhone and iPad, Dell, Lenovo and Samsung products.”
It notes, ECS has been aggressively expanding brand portfolio and distribution network, while margin expansion schemes will enhance profitability.
It adds, the potential listing on the Taiwan exchange could be a catalyst; “ECS is planning a secondary listing in Taiwan through issuing Taiwan Depository Receipts. The group plans to use the proceeds for working capital to fund its growth in the region and hopes to achieve a more attractive valuation, with investors in Taiwan being highly savvy about technology stocks.”
Shares are +2.4% at $0.850.
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