<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We reinstate System Ltd (SYS PA) in our formal coverage with
an ‘Outperform’ rating and assigning Dec-18 TP of Rs112.8/sh. Besides the
obvious Rupee depreciation benefit, we believe (1) MEA operations, (2) Package
04A- AIMS, (3) Call center and (4) OneLoad have all shown potential to
strengthen SYS bottomline ahead. We see SYS to deliver 5-year earnings CAGR of
15.4%.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">MEA operations (TechVista Systems FZ-LLC) has turned into
profit thanks to 57%YoY topline growth in 9MCY17. Gross margins have also
improved to 33% in 3QCY17 from 16% in SPLY. Improved profitability is
attributed to (1) Gold partner of Microsoft and IBM, (2) partnership with Gulf
Software...
