• last year
HLIB thinks SMRT is the smart choice
Transcript
00:00 We end the week with SMRT Holdings after HLIB walked away from a recent briefing feeling
00:06 reassured about its robust prospects.
00:08 It is keeping both its buy call and RM1.38 target price on the IoT provider.
00:14 So its new managed sites increased by 1.13k to 22.5k in the first quarter of FY24, thanks
00:21 to encouraging new site deployments in Malaysia and Indonesian markets, which both registered
00:26 quarter-on-quarter growths according to management.
00:29 Looking ahead, management anticipates a sustained increase in the number of new sites over the
00:33 next two quarters, anchored by PLN and TNB, as utility companies spend the bulk of their
00:38 capex towards the year-end.
00:40 To recap, SMRT successfully entered four regions - Lampung, Nusa Tenggara Timor, Jawa Barat
00:45 and Kalimantan Timor & Utara - after securing PLN as a customer in the fourth quarter of
00:51 the calendar year of 2022.
00:53 SMRT also secured its maiden contract from Aislango, marking its foray into the water
00:58 segment.
00:59 It is worth noting that the water segment is likely to generate a higher revenue per
01:03 site compared to the power and financial services sectors over the same contract period due
01:07 to the larger scope of work.
01:10 SMRT is also expanding.
01:12 It has recently established a wholly-owned subsidiary in the Philippines as part of its
01:15 strategic initiative to expand into the country's utility and financial services sectors.
01:21 According to Bloomberg Data, HLIV is the only house that covers SMRT, so based on its RM1.38
01:26 target price, this implies a possible upside of just a touch over 40% from its last close
01:31 of 98 cent.
01:33 [Music]