MMSV

Through its subsidiaries, manufactures industrial automation systems, designs die sets, jigs and fixtures, and develops computer software.

MMSV has two subsidiaries: Micro Modular System Sdn Bhd, which is engaged in the manufacture of automated systems and machinery, and Evolusys Technologies (Malaysia) Sdn Bhd, which is engaged in the development of software.

Based on 1HFY15, MMSV distributes its products within the domestic market (26%) and to overseas market, including the United States (40%), Asia (33%), Australia (0.18%) and Europe (0.01%).

It is a net beneficiary from stronger USD against MYR. Circa 70% of its revenue is denominated in USD which provides natural hedge to its raw materials purchases at circa 20% of total production cost.

Based on it. FY14 annual report, every 5% of strengthening USD against MYR would translate into RM0.378m or 3.6% increase in its FY14 profit after tax. However, Chinese yuan devaluation may hurt MMSV’s export sales.

It has net cash of RM17.5m or approximately 10.7 sen per share, allowing the company more flexibility in regards to business decisions and potential investments

At rm0.575 per share, MMSV is trading at trailing 12 months P/E of 8x following sharp drop in share price. Excash P/E is only 6.5x.