Wednesday, April 6, 2011

Century Software advances in early trade

KUALA LUMPUR: Century Software Holdings Bhd (CSHB) shares advanced on Wednesday, April 6 after OSK Research initiated coverage on the stock with a Buy recommendation and target price RM1.53.

At 11am, CSHB added six sen to RM1.44 with 5.4 million shares traded.

OSK Research in a note April said the company was a provider of financial management software and solutions with a near-monopoly in providing these solutions to Federal Statutory Bodies (FSB).

It said the government was currently pushing for the standardisation of accounts across the FSBs which will require an upgrade in their systems.

Some 42% have yet to carry out the upgrade thus presenting a lucrative market for CSHB, it said.

CSHB also provides payment gateway services which is in demand as internet banking increases in popularity, it said.

'Its new B2G portal should see ready take up as it will help make payments to Government bodies much smoother.

'With an earnings CAGR of >30% over the next 2 years, we are pricing CSHB at RM1.53, based on 13.5 times FY11 PER. Initiate coverage with a Buy recommendation,' it said.

No comments:

Post a Comment