ECS Holdings cashes in on new Apple product launches

It’s also poised to capture server market growth.

A good year looms over SGX-listed information technology firm ECS Holdings. A report by OCBC today revealed that the firm is poised to cash in on anticipated Apple product launches, and it is also positioned capture growth in the booming server market.

OCBC notes that the anticipated release of iPhone 6 and lighter MacBooks will push growth ECS’ distribution segment. Apple remains one of ECS’ key products in its distribution segment, especially in China, contributing more than 10% of ECS’ total revenue. 

OCBC also noted that the company is poised to capture growth as the server market is experiencing the start of an infrastructure refresh.

“Since turning its focus from distribution to enterprise segment last year, we believe ECS is poised to capture the growth arising from growing demand for servers alongside with its vendors. Furthermore, with the expected strong pipeline of new Apple products, we believe ECS will see growth. Hence, we revised our FY14 and FY15 PATMI forecast upwards by 2% and 7%, respectively. As we expect the growth to be more significant in 2015, we rolled forward our valuations to 6x FY15F EPS to derive an increased new fair value estimate of S$0.68 (prev. S$0.61), supported by a decent FY14F dividend yield of 3.7%,” noted OCBC.