IPS Securex Holdings - RHB Invest 2017-12-22: Ceasing Coverage

IPS Securex Holdings - RHB Invest 2017-12-22: Ceasing Coverage IPS SECUREX HOLDINGS LIMITED 42N.SI

IPS Securex Holdings - Ceasing Coverage

  • We are ceasing coverage on IPS Securex due to internal resource reallocation, coupled with the low institutional interest and trading liquidity of the stock. 
  • Our previous recommendation was NEUTRAL with a TP of SGD0.09.

Leading provider of integrated security solutions. 

  • IPS Securex Holdings (IPS) is one of Singapore’s leading providers of integrated security solutions. 
  • Formed in 1991 and with offices and partners throughout Asia Pacific, it has successfully implemented many complex integrated security systems throughout the region and established a reputation for delivering customised solutions on time and within stipulated budgets.
  • Since 2000, the company has been providing its clients with security products and integrated security solutions that are deployed to address various security requirements including security checkpoints, law enforcement and the protection and surveillance of buildings and critical infrastructure. 
  • It carries over 100 types of security products with distribution rights for some products spanning 10 countries in the Asia Pacific.

Letter of Intent (LOI) worth USD54.8m unlikely to be fulfilled. 

  • On 29 Apr 2015, IPS announced that it had received an LOI with a total contract value of USD54.8m to supply to a government body in South-East Asia over a 2-year period. 
  • Initial orders were received, but payments and subsequent orders have been delayed multiple times. As a result, we think that the probability of the fulfilment of the USD54.8m LOI is very low.

Jarick Seet RHB Invest | http://www.rhbinvest.com.sg/ 2017-12-22
RHB Invest SGX Stock Analyst Report NEUTRAL CEASE NEUTRAL 0.090 Same 0.090