IPS Securex Holdings - RHB Invest 2016-02-02: New reseller agreement with UnderSea Sensor Systems

IPS SECUREX HOLDINGS LIMITED 42N.SI

IPS Securex Holdings - New reseller agreement with UnderSea Sensor Systems

IPS Securex (IPSS SP) has entered into a new reseller agreement with UnderSea Sensor Systems, Inc. for the distribution of USSI’s Hyperspike range of acoustic hailing devices, for a period of five years.
The Agreement now covers the geographical regions of Australia , Brunei, Cambodia, China, Hong Kong, Indonesia, Macau, Malaysia, Myanmar, Japan, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, and Vietnam on an exclusive business, with India on a non-exclusive basis.

China is a new addition to the list and is on an exclusive basis, whereas Hong Kong and Macau which was previously on a non-exclusive basis under the existing reseller agreement, is now on an exclusive basis under the Agreement.
The Agreement will commence with immediate effect and supersedes the existing reseller agreement between IPSPL with USSI.
We remain positive on IPS and maintain BUY with a DCF-backed TP of SGD0.40. (TG 0%, WACC 10.5%)

Jarick Seet RHB Invest | http://www.rhbinvest.com.sg/ 2016-02-02

RHB Invest SGX Stock Analyst Report BUY Maintain BUY 0.40 same 0.40