Executive Summary – Scicom (MSC) Bhd

Stock price: RM 0.965 | FY2025 net profit: ≈ RM 20.35 million | Cash: ≈ RM 50 million | Debt: 0 | Dividend payout: 80-90 % of earnings (quarterly since 2005)

Scicom (MSC) Bhd is a Malaysian BPO and government-technology specialist entering a potential new growth phase. For FY2025, Scicom delivered ≈ RM 20.35 million net profit (EPS ~5.7 sen/share based on ~356 million shares), while maintaining its high 80-90 % dividend payout policy.

? Growth Catalysts

Three Government Concessions Secured:
• TVET – 15-year contract serving ≈ 436,000 vocational students in partnership with > 150 companies (with more expected to join)
• SIRIM and MDEC – additional long-tenure gov-tech mandates

Strategic BPO / AI Partnership with Telekom Malaysia – expands enterprise solutions and is expected to lift operating margins as clients migrate to AI-enabled platforms.

Workforce expansion: recruiting > 800 staff to support contract execution.

Management guidance: in Q3 FY2025 Scicom highlighted “significant growth” for FY2026, while Q4 FY2025 results cited “robust” momentum ahead.

CEO interview with The Edge: if the three major contracts reach full scale, profit could quadruple vs FY2025.


? Financial Strength

Zero debt and ≈ RM 50 million cash reserve

Unbroken quarterly dividends since IPO in 2005

Payout ratio 80-90 % means future earnings growth flows directly to shareholders.


? Illustrative EPS & DPS

Scenario Profit (RM m) EPS (sen/share) DPS @ 80-90 % (sen/share) Approx. DPS/quarter

FY2025 baseline ≈ 20.35 ≈ 5.7 ≈ 4.6 – 5.1 ≈ 1.1 – 1.3
Upside – profit × 4 (CEO guidance) ≈ 80 ≈ 22 – 23 ≈ 18 – 21 ≈ 4.5 – 5.3

? Valuation at Target Yield

If the market prices Scicom at a 7 % dividend yield, the upside DPS (≈ 18-21 sen) implies a potential fair-value range of ≈ RM 2.60 – RM 3.00 per share.
Current price (RM 0.965) reflects mainly baseline earnings and has not priced in the expected contract ramp-up.

? Investment View

Scicom’s debt-free balance sheet, three secured concessions, expanding AI-driven BPO business, and high payout policy provide a solid platform for multi-year earnings and dividend growth.
Execution of the TVET, SIRIM, and MDEC contracts—together with AI-enabled margin gains—could transform Scicom’s earnings profile, potentially quadrupling profits and lifting annual dividends to ~18–21 sen/share, translating to an attractive potential yield and re-rating opportunity at current levels.

> All forecasts above are illustrative and subject to operational delivery, contract ramp-up, and board approval of dividends.