Apex Research favours Kronologi Asia for its gaining traction in sustainable income, promising industry outlook and robust balance sheet.
Category
🗞
NewsTranscript
00:00 Good morning, today it's Chronology Asia, which provides Enterprise Data Management
00:06 or EDM solutions.
00:07 Apex Research maintaining its buy recommendation on the counter with a target price of 53 cent.
00:14 The stock last closed at 42 cent.
00:16 According to Apex, Chronology's second quarter FY20 for results met expectations, though
00:22 first half earnings accounted for only 24% of its full year forecast.
00:27 This is consistent with the seasonally slow performance during the first six months of
00:32 the year.
00:33 But the research house expects the earnings will pick up in the remaining quarters, particularly
00:38 in the second half of FY24.
00:40 Looking ahead, it is optimistic on the company's China operation in the near term due to its
00:45 recovery prospects and in the long term, supported by growth in the EDM as a service business
00:52 and the ongoing supply chain relocation.
00:54 Meanwhile, Chronology's focus on serving Asian markets will mitigate risks amid global economic
01:00 headwinds.
01:01 Apex keeping its FY24 net earnings forecast at RM23 million and FY25 net earnings forecast
01:09 at RM27.8 million.
01:11 The research house favours the stock for its gaining traction in sustainable income, promising
01:16 industry outlook and robust balance sheet.
01:20 So what's the consensus?
01:21 According to Bloomberg data, only Apex covers the stock.
01:25 To recap, that's one buy with a target price of 53 cent.
01:29 Chronology closed on Friday at 42 cent, so that's a potential return of about 26%.
01:35 (upbeat music)
01:37 [MUSIC PLAYING]