DISA Ltd > Buy KGI Securities (Singapore), June 22 June 22 close: S$0.008 Target price: S$0.02

SINCE its invention of the world's first anti-theft protection technology that uses encrypted codes on consumer electronic products, DISA has focused all its resources on its anti-theft business and continues to ramp down its other businesses, with revenue from technology making up 64 per cent of revenue as at 9M 2018.

Given that Walmart is now using DISA's technology, we believe the time is ripe for the firm to ramp up its market penetration. As the first mover providing a digital point-of-sale activation solution, we believe that the company would be able to get at least three top United States retailers onto its platform. Based on our projections, we forecast DISA to break even in FY2021F and revenue growth at a compound annual growth rate of 135 per cent from 2017 to 2021F.