Highlights
KLSE: SCGM (7247)       SCGM BHD Main : Industrial Products
Last Price Today's Change   Day's Range   Trading Volume
4.21   +0.09 (2.18%)  4.12 - 4.21  134,000
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Overview

Market Cap: 611 Million
NOSH: 145 Million
Avg Volume (4 weeks):68,957
4 Weeks Range:4.00 - 4.30
4 Weeks Price Volatility (%):
70.00%
52 Weeks Range:2.73 - 4.35
52 Weeks Price Volatility (%):
91.36%
Average Price Target: 4.03
Price Target Upside/Downside: -0.18

Financial Highlight

Latest Quarter | Ann. Date 30-Apr-2017[#4]  |  21-Jun-2017
Next QR | Est. Ann. Date: 31-Jul-2017  |  02-Sep-2017
T4Q P/E | EY: 26.58  |  3.76%
T4Q DY | Payout %: 1.76%  |  46.75%
T4Q NAPS | P/NAPS: 1.1083  |  3.80
T4Q NP Margin | ROE: 12.87%  |  14.29%

Market Buzz

Date Type Subject
22-Jun-2017 Price Target SCGM - Another Set of Record Earnings
Source : PUBLIC BANK, Price Call : BUY, Price Target : 4.26
Last Price : 4.21, Upside/Downside : +0.05(1.19%)
22-Jun-2017 Price Target SCGM - FY17 Below Our Expectations
Source : KENANGA, Price Call : HOLD, Price Target : 3.05
Last Price : 4.21, Upside/Downside : -1.16(27.55%)
23-Jun-2017 Blog 新厂年杪竣工.SCGM产能料增74%
21-Jun-2017 Quarter Result Quarter Result on 30-Apr-2017[#4] QoQ - -27.16% YoY - 46.85%.
21-Jun-2017 Entitlement SCGM BHD declared Interim Dividend - RM 0.02, the ex-dividend date on 07-Jul-2017.
23-Jun-2017 Insider KUMPULAN WANG PERSARAAN (DIPERBADANKAN) (a substantial shareholder) acquired 12,000 shares on 21-Jun-2017.
21-Jun-2017 Meeting Notice Extraordinary General Meeting on 07-Jul-2017.
22-Jun-2017 Forum 1 New Comment

Headlines

Latest Headlines
23/06/2017  新厂年杪竣工.SCGM产能料增74%
22/06/2017  SCGM - Another Set of Record Earnings
22/06/2017  SCGM - FY17 Below Our Expectations
05/06/2017  SCGM: “Sure Can” Growth Model
02/05/2017  SCGM Berhad - Bonus and Warrants
02/05/2017  SCGM Berhad - Proposes Bonus Issue and New Warrants
02/05/2017  Mplus Market Pulse - 2 May 2017
21/03/2017  受惠禁保丽龙.SCGM钱景看俏
17/03/2017  SCGM - Outlook Remains Intact
17/03/2017  SCGM - More Positive Guidance
16/03/2017  SCGM (7427) - Turnover raise with 2 Sens Dividends
16/03/2017  海外销售47%.SCGM受惠强势美元
16/03/2017  SCGM - A Decent Quarter
16/03/2017  Mplus Market Pulse - 16 Mar 2017
16/03/2017  SCGM - 9M17 Within Expectations
16/02/2017  [转贴] AGM游记(2016) —— SCGM - Easy Wong
10/02/2017  SCGM - Construction of New Plant Set To Begin
10/02/2017  Mplus Market Pulse - 10 Feb 2017

Business Background

SCGM Bhd (SCGM) is a Malaysia-based investment holding company. The Company operates in two business segments, namely manufacturing of plastic products segment, which is engaged in manufacturing and trading of plastic products, and investments segment, which is engaged in investment holding. Its packaging products are being used to pack food products, including sandwiches, cakes, chocolates, biscuits, salads and moon cakes. It also offers antistatic and black conductive trays to hold semi-finished electronic products, such as liquid crystal display and hard disk drive parts, as well as packaging to store end-products, such as computer software. Lee Soon Seng Plastic Industries Sdn. Bhd. is SCGM's subsidiary, which is engaged in manufacturing and trading of plastic products.
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dfsbipohsch SCGM Bhd - Another Solid Quarter

Source: PublicInvest Research - 9 Dec 2016

SCGM’s 1HFY17 results were relatively strong and came in within our and consensus earnings forecasts, making up 46% and 43% of full-year estimates respectively. We expect to see better results in the 2HFY17, banking on more orders in the pipeline, driven by higher demand for its biodegradable lunch boxes ahead of the regulatory bans on polystyrene products effective next year. Meanwhile, a lower DPS of 2sen was declared for the quarter (vs 2QFY16: 2.7sen). Pending further management guidance from the analyst briefing next week, we maintain our Outperform call with an unchanged TP of RM4.00 based on FY18 PER of 21x.
• Revenue jumped 23.0% YoY. The Group registered an encouraging growth of 23% YoY to RM42m in 2QFY17 on the back of better plastic packaging product sales from local demand.
• Core earnings (QoQ: +10.6%, YoY: +30.0%). Stripping out the foreign exchange gain, the Group’s core earnings jumped 30.0% YoY to RM5.2m in 2QFY17, mainly driven by improved sales from plastic packaging products. Gross earnings margin improved from 14% to 15% meanwhile, though operating expenses rose 22% YoY attributed to an increase in cost of production, staff cost, depreciation of property, plant and equipment, electricity cost and packaging materials.
• Expanding capacity. In anticipation of the regulatory bans on polystyrene foam packaging in several states next year, there has been a notable pick-up in demand for substitute products such as lunch boxes, disposable hygiene cups and other related products. To meet these increasing orders, management has started operations at the 20,000 sq ft rented factory in Kulai to increase production in the interim. Currently, 1 extrusion machine and 1 thermo-forming machine are being operated in the rented space. Management plans to house an additional extrusion machine and 3 thermo-forming machines in the short-term.
• Maintain Outperform call. The recent recovery in oil prices could affect its resin cost, which is mainly derived from petrochemicals. Nevertheless, we believe the company can pass on additional input costs to customers given its strong market share (more than 60%) in the industry. We like the company for its i) recession-proof business, ii) substantial capacity expansion in the pipeline
Source: PublicInvest Research - 9 Dec 2016
09/12/2016 13:02
dfsbipohsch • Highlight
SCGM banks on resilient demand for its products
This article first appeared in The Edge Financial Daily, on December 19, 2016.

KUALA LUMPUR: Amid a challenging local and global economic landscape, thermos-vacuum form plastic packaging manufacturer SCGM Bhd sees itself as a defensive business as demand for its products stay resilient.
“Demand [for plastic packaging] is still very high,” according to the group’s executive chairman Datuk Seri Lee Hock Seng.
In fact, SCGM has decided to temporarily rent a factory to increase production to 36 million kg per year before its second factory is completed by December 2018.
The new factory is expected to boost capacity to 62.6 million kg per year.
Currently, SCGM’s production capacity is 25 million kg per year.
“Demand for our product is inelastic; people need it when times are good. Even when the economy is bad, people ‘dabao’ (Cantonese colloquial for takeaway food) more, which requires packaging,” he told The Edge Financial Daily in a recent interview.
SCGM makes plastic packaging for the food and beverage sector which contributes up to 75% of its revenue. Its products for the electronic and medical sectors make up 10% and 15% of revenue respectively.
So far, Lee said, about 40% of the group’s production is meant for export, while the remaining 60% is for the domestic market.
“It was a 50:50 ratio before this, but the export market grew in [a] single-digit percentage, while the domestic market has been enjoying double-digit growth lately, thanks to [the] rising trend of biodegradable products,” he said.
For the second quarter ended Oct 31, 2016 (2QFY17), Lee said SCGM added six new international customers and 34 new local customers.
It is worth noting that by June next year, five states in Peninsular Malaysia will be banning the use of polystyrene containers and plastic bags. The five are Penang, Melaka, Johor, Selangor and Perak.
In Kuala Lumpur, it was reported that by year end, Bukit Bintang will be the second area to be declared polystyrene-free as Kuala Lumpur City Hall pursues its green city initiative.
Dataran Merdeka was declared a prohibited area for polystyrene food containers in July last year.
SCGM’s Lee said the campaign to increase the usage of biodegradable products is very effective since it was initiated at the governmental level.
“Our clientele has been increasing after the ban on polystyrene packaging in some key states here, and locally, we are the biggest biodegradable packaging manufacturer,” he said.
For 2QFY17, SCGM registered RM2 million sales for biodegradable lunchboxes, a 42% growth from RM1.4 million in 1QFY17. Revenue for the quarter stood at RM42.02 million.
For the first half of FY17, the group recorded a net profit of RM10.94 million, a 13% growth from RM9.68 million last year, while revenue grew 25.31% to RM79.89 million, from RM63.76 million previously.
SCGM’s management has a policy to distribute 40% of its annual earnings as dividends to shareholders.
As at Aug 25 this year, Lee and his three younger brothers collectively owned a 48.26% stake in SCGM. SCGM are the initials of the brothers’ names.
Moving forward, Lee expects the group’s turnover will continue to reach a new record high in FY17 by registering double-digit growth.
“Our backlog [for orders] now stands at about two months, meaning if a customer orders now, it will take them two months before delivery. It is expected to go higher and we cannot afford to miss this market opportunity because we need this volume to feed our new factory by 2018,” he explained.
Therefore, Lee said SCGM’s management will consider renting additional factory space should the backlog reach 2.5 months.
However, it is not all rose petals and sunshine for SCGM. Effective tomorrow, the group will increase its selling prices to customers by 10% to offset the recent spike in resin cost, a raw material to produce plastic packaging products, which makes up more than half of total production cost.
“This is to sustain our margin and it is our first revision in two years. Usually, we prefer not to revise unless our overall costs increase by more than 10%,” Lee explained.
Currently, there are only three research houses covering SCGM, namely PublicInvest Research (outperform), Kenanga Research (outperform) and Inter-Pacific Securities Research (neutral). Their target prices for SCGM range from RM3.56 to RM4.
Last Friday, SCGM closed one sen or 0.3% higher at RM3.38, with a market capitalisation of RM446.16 million.
It was last traded at a forward price-earnings ratio of 20.74 times. Year to date, the counter has gained by 6.62%.
19/12/2016 10:19
soohau78 so quiet...
07/02/2017 07:17
dfsbipohsch Thursday, 9 February 2017
SCGM set to build new facility in Kulai
KUALA LUMPUR: SCGM Bhd, a thermoform food packaging manufacturer, is set to commence construction of its new RM54mil manufacturing facility in Kulai, Johor.
The facility, spread over 7.8ha is located about 5km from the company’s existing premises, and scheduled for completion in December 2018.
In a statement yesterday, managing director Datuk Seri Lee Hock Chai said the enlarged production floor space and new machinery at the facility, would bump up the group’s extrusion capacity by 73% to 62.6 million kg per year from the current 36 million.
“As a major producer of thermoform packaging for food and beverages, SCGM has been among the key beneficiaries of higher demand in the past year with the regulatory ban on polystyrene products in Malaysia.

“We foresee a second wave of uptrend in demand along with public awareness on food safety and environmental sustainability, not only in the local market but also increasingly in the Asia-Pacific region,” he added.
Lee is optimistic that the larger production capacity accorded by the new factory would place SCGM on a steady growth path to meet current and future demand.
The group has earmarked RM125mil in total capital expenditure for the new factory, encompassing land acquisition, building construction and purchase of new machinery. – Bernama

Read more at http://www.thestar.com.my/business/business-news/2017/02/09/scgm-set-to-build-new-facility-in-kulai/#tizccdH3w54H4u5a.99
09/02/2017 12:09
stockmanmy SCGM will do well

almost monopoly is a growing market.

their machines at full capacity still demand more than supply.

SCGM choose their customers, not customer choose suppliers.
09/02/2017 14:26
dfsbipohsch SCGM - Construction of New Plant Set To Begin
Author: PublicInvest | Publish date: Fri, 10 Feb 2017, 09:45 AM

SCGM announced that it has awarded RM54m construction contract for the new manufacturing plant in Kulai. The new plant, which is expected to be completed by end-2018, will bump up the Group’s extrusion capacity by 73% to 62.6m kg/year from the current level of 36m kg/year. Once the new capacity kicks in, it is expected to lift the company’s annual product sales by more than 50%. We maintain Outperform call with an unchanged TP of RM4.00.

• Details about the new plant. Management has allocated RM125m for the new plant, which will further increase its extrusion capacity from 36m kg/year to 62.6m kg/year. The new plant is located on a 7.8-ha land (19.2 acres) in Kulai, which is 5km away from the Group’s existing premises. Construction activity is expected to be completed by end-2018. About RM11.8m has been invested for the land acquisition while the construction cost will be about RM54m. The remainder will go to the new machinery. The new plant will consist of a 3-storey office, a 2-storey factory, a 2-storey warehouse as well as ancillary building such as hostel and canteen. The new plant will accommodate i) 6 extrusion machines, ii) 10 thermo-forming machines and iii) 1 cup manufacturing machine. All these new machines are expected to arrive by July-Aug 2018.

• Funding. The RM125m capex will be funded through internally generated funds, borrowings
and proceeds from ongoing private placement. The Group currently has a net cash of RM7.1m while the ongoing private placement will raise about RM46m. We believe the remainder will derive from the external borrowings and future earnings.

• Strong pick-up in biodegradable products. In view of the regulatory bans on polystyrene foam packaging in several states effective this year, there is increasingly strong demand for the biodegradable lunch boxes and disposal hygiene cups. During the 1HFY17, the Group’s cup sales totaled RM3.4m (2QFY17: +42.8% QoQ), mainly led by the new Australia’s regulation on wine glass ban.

• Foreign labour woes. The Group has a total of 480 workers, in which foreign workers made up for 63%. The ban on hiring foreign labour last year has prompted the company to hire more local workers.

• Running at high utilization rate. The company’s current production capacity stands at 36m kg/year. The current production is running at around 33-34m kg/year, a high capacity utilization rate of 92%-94%.

Outperform call with an unchanged TP of RM4.00.

Source: PublicInvest Research - 10 Feb 2017
10/02/2017 10:31
bsngpg Great expansion plan by one of my "Huan Choo"(sweet potato) counter.
10/02/2017 11:45
richduck whats happening today..
15/02/2017 11:28
Joblessrich going up is good
15/02/2017 17:40
Joblessrich with so many states banned styrofoam boxes and cups. The biodegradable boxes must be selling very well.
Revenue will be up, profit will eventually be up. Maybe not so much in the December 2016 quarter, but next quarter will be damn good.

Buy buy buy ...
22/02/2017 23:50
njue76 Profit double next quarter..will go 4.00
14/03/2017 22:35
Mgician so excited today ~~~ good
15/03/2017 11:07
Joblessrich Made the right decision to buy buy buy .... Now, I am laughing

Sifus, how high will it go ?
15/03/2017 12:01
gogogogo gogogo
15/03/2017 12:15
pputeh QR should be out soon. This week or next. Share price has started to move. Hoping for better performance
15/03/2017 13:04
Patrick13 Good result out. EPS 5.29. Dividend declared 2 cent per share.
15/03/2017 17:52
Jianjianfox Result ok la... not.much surprise... resin and labour cost go up.. but revenue increase significantly...Will cont to.hold
15/03/2017 18:23
Meng Current quarterly result doesn't give any surprise is reasonable. If you trace back the news few months before, you will find the clue that this quarterly result will not get you any surprise.

What make the investors excited to the company is that the demand of the lunch box getting higher recently, the sales is constantly increase over the time. But let's look back what happened in the few months back:

At the early of 2016, the production lines almost reach the maximum capacity, the company has decided to expand the business by constructing another factor to increase the capacity to 62 million kg per year which is 1.5 time increase from the existing capacity 25 million kg per year.

By the time the company looking for a place for the new factory, the company also decide to temporary rent a place near by, house the machine to increase the production to meet the demand before the new factory take place. The rented 20000 sqft factory was capable to increase the production capacity to 36 million kg per year which is 44% increase from existing capacity. By the time December 2016, the company mention that there are 1 extrusion machine and 1 thermo-forming machine operated in the rental factory, and the company plan to house 1 additional extrucsion machine and 3 thermo-forming machines in short term, meaning that in Dec, the rental factory is only have 1/3 of it's full capacity. In Feb 2017, the company mention that the production capacity already reach 33 million kg per year, which is 92% of the total capacity (36 million kg per year).

The latest report is for the quarter between Nov 16 and Jan 17, which the rental factory have yet been fully utilized. For the next quarterly report, we shall see the true result that the company can perform with the current facilities.

Meanwhile, the company did mention to increase the sales price by 10% effective on 20 Dec 2016. By that time, the company's orders backlog was 2 months, meaning that the customer order today will get the product ready to deliver after 2 months. So the 10% increase in sales price should be only will affect the revenue 2 months later which is Feb 2017. Although the increasing of the production capacity may affect the orders backlog, but i believe that in the current quarter report that didn't affected much.

Personally, i will hold it for now and wait for next quarter result. Current PE is a just too high. And should not expect too much in dividend since the company need money for the new factory
16/03/2017 12:07
Joblessrich Meng, very good write up. Thank you.
I will hold and add if price weakens
16/03/2017 12:52
Hui Xin Sim good understanding meng... 4.21 and above is my target.. chill la.. this stock is steady... most importantly.. this company able to transfer the cost of increase resin to the customer... margin of profit so far so good.. and better than many of its peers.... i am holding since 2.98 hehe.. plan to keep for many years..
16/03/2017 13:00
stockmanmy meng is an IB analyst or works inside.
16/03/2017 13:21
stockmanmy this share will pay you.
16/03/2017 13:22
Meng im just an ordinary investor like you stockmanmy. i follow and read all related news from the company, you can read some from the comments above too.
16/03/2017 15:20
Joblessrich Meng,
Any relation to Lee Hock Meng ?
16/03/2017 18:36
Meng if I have any relationship with him, I think I won't have the stupid idea to sell all my scgm shares back in 2014.. I'm truly regret on my decision. Now I'm one of the long term share holder in the company won't simply let go of the share anymore.
16/03/2017 22:01
Joblessrich Thank you, Meng.
This is a good time for me to cummulate more.
I believe, this company will do well for the next few years.
17/03/2017 22:28
LAIZHENGLIT Did any huy know, the cost of resin is derived from U.S Dollar or MYR?
21/03/2017 04:27
RainT Usd
22/03/2017 12:48
Joblessrich Thank you to the bosses of SCGM.
28/03/2017 18:12
dfsbipohsch Plastics, packaging players to gain from capacity expansion
March 30, 2017, Thursday Adrian Lim, adrianlim@theborneopost.com

KUCHING: Plastics and packaging manufacturers are poised to benefit from their capacity expansion to enhance their revenue growth over the long-term.
The research arm of Kenanga Investment Bank Bhd (Kenanga Research) in a report yesterday said their expansions across the sector will continue to drive top-line growth in the long run.
Elaborating further, the research firm said one of the companies under its coverage, SLP Resources Bhd (SLP Resources) is expected to continue with its capacity expansion plan.
“The company is planning a new manufacturing facility to increase capacity by 58 per cent to 38,000 metric tonne (MT) by financial year 2018 (FY18) and targeting to penetrate the Chinese market in the future,” it explained in a note.
Meanwhile, another packaging company SCGM Bhd (SCGM) is renting a 20,000 square feet (sqft) facility in Kulai, Johor to house two new extrusion machines, thus increasing the company’s capacity production by 44 per cent to 36,000 MT per year in financial year 2017 (FY17) ending April 2017.
The company’s longer-term expansion plans include a new plant targeted for completion in FY19 ending April 2019 which will boost production capacity by an additional 74 per cent to 62,600 MT per year.
Furthermore, Scientex Bhd (Scientex) continued to ramp up its operations with additional capacity production at its Rawang plant and Ipoh plant by the second half of financial year 2017 (2HFY17) ending July 2017.
Scientex has also invested in a new plant in the US due in the second half of 2018 (2H18) to boost the group’s capacity and sales.
“Another company, Thong Guan Industries Bhd (Thong Guan) is constantly investing in capacity expansion and research and development (R&D) to improve sales and profit margins on existing products as well as revamping its customer base to target more multinational corporations (MNCs),” it added.
“As a result, the continued expansions by plastics and packaging manufacturers should ensure their long-term earnings growth beyond FY18.”
For the plastics and packaging manufacturers financial results for FY17 and FY18, the research firm expects strong earnings growth of 25 per cent and 33 per cent for SLP Resources, 26 per cent and 29 per cent for SCGM, 18 per cent and 19 per cent for Scientex and 12 per cent and 14 per cent for Thong Guan.
Owing to the steady expansion plans backed by strong demand for plastic products, Kenanga Research believed the plastics and packaging manufacturers are going to register strong earnings growth in the future supported by more sales from increased production.
Besides that, the research firm maintained its bullish outlook on the sector due to favourable macroeconomic fundamentals.
“The plastics and packaging sector will continue to remain resilient in the near term driven by resilient demand, allowing plastic packagers under its monitoring to embark on robust capacity expansion over the next one to two years, and product innovation, translating to strong double-digit earnings growth in FY17-18,” it said.
The prospects of the sector remain strong supported by the weak ringgit environment and low resin cost which it has accounted for in its earnings estimates for plastics and packaging manufacturers under its coverage, allowing the sector to thrive on positive market sentiment.

http://www.theborneopost.com/2017/03/30/plastics-packaging-players-to-gain-from-capacity-expansion/
31/03/2017 11:05
Billionaire_Dreamer TQ, SCGM!!!!!! Keep Going Up!!!!
06/04/2017 23:08
stockmanmy This I am looking at $ 6 to $8 by year end.
06/04/2017 23:10
stockmanmy My cost is below $ 3.
06/04/2017 23:11
Billionaire_Dreamer i bought 2.89
06/04/2017 23:16
Joblessrich When will the other states ban the Styrofoam lunch boxes ?
It will drive the company share higher.... cheers
12/04/2017 21:43
stockmanmy looking at $6 to $8 by then.
12/04/2017 22:07
njue76 1 Jun 17...Perak start banned polystrine
17/04/2017 20:03
Joblessrich @njue76. Thank you very much
17/04/2017 22:05
dfsbipohsch SCGM proposes 1-for-3 share bonus issues
April 28, 2017 21:13 pm MYT

KUALA LUMPUR (April 28): Thermos-vacuum form plastic packaging manufacturer SCGM Bhd has proposed a bonus issue of 48.4 million new shares on the basis of one bonus share for every three existing shares, to reward shareholders.
In a filing with Bursa Malaysia today, SCGM also proposed a bonus issue of 19.36 million warrants on the basis of two free warrants for every 15 existing share.
The illustrative exercise price for the three-year tenure warrant is RM4.05, which represents a premium of about 29.39% to the theoretical ex-bonus price of RM3.13 per share, based on the five days-weighted average market price of SCGM shares up to and including April 27 this year.
Full exercise of these warrants are estimated to be capable to raise some RM78.4 million, which would be utilised as additional working capital for SCGM’s daily operation.
SCGM’s current share base is 145.2 million shares, and will enlarge to 193.60 million shares, subsequent to the bonus issue of new shares.
The group’s share base would expand up to 212.96 million shares, assuming full exercise of all warrants.
These two corporate exercises require shareholders’ approval, and is expected to be completed within two months.
SCGM’s share price fell four sen or 0.98% to close at RM4.05 today, giving it a market capitalisation of RM588.06 million. Year-to-date, the counter has risen 20.5%.
http://www.theedgemarkets.com/article/scgm-proposes-1for3-share-bonus-issues
29/04/2017 08:20
Joblessrich Very happy with this surprised bonus. Will hold and add.
Wait for Perak to ban polystyrene lunch boxes in June 2017.
Wait for Johor to ban Polystyrene lunch boxes in Jan 2018.
29/04/2017 12:27
dfsbipohsch SCGM Berhad - Proposes Bonus Issue and New Warrants
Date: 02/05/2017
Source : PUBLIC BANK

SCGM has proposed to undertake two corporate exercises, a bonus and a new warrant issue, to increase trading liquidity and raise new capital for the group. It plans to issue 48.4m new shares on the basis of one bonus share for every three existing shares held and also 19.3m warrants on the basis of two free warrants for every 15 existing shares held. We welcome the move as both exercises resolve the current thin liquidity issue and also strengthen its balance sheet for working capital purposes in the future. Pending the completion of both exercises, we continue to rate the company with an Outperform call and TP of RM4.26.
• Issuance of 1-for-3 bonus issue. Management has proposed a bonus issue of 48.4m new shares on the basis of one bonus share for every three existing shares held. Given the positive prospects, we believe the higher liquidity could boost share prices.
• Issuance 2-for-15 new warrants. It also plans to issue 19.3m warrants on the basis of two free warrants for every 15 existing shares held. The warrants will have a tenure of three years, exercisable any time during the period. The proposed issuance of warrants is expected to raise about RM70-80m in gross proceeds upon full exercise, and will will be used to finance its additional working capital especially when the new manufacturing plant in Kulai is operational.
• Subject to approvals. Both corporate exercises are subject to the approvals of i) Bursa Malaysia and ii) shareholders at an extraordinary general meeting. Both proposals are expected to be completed by 2H 2017.
• Valuation impact. While the proposed issuance of new warrants will dilute its EPS in the near-term, it will nevertheless be cushioned by the additional earnings contribution from the new manufacturing plant in Kulai, which is expected to increase its extrusion capacity from 36m kg/year to 62.6m kg/year. The plant is expected to be operational by June 2019. The market price and our target price will be adjusted accordingly post the bonus issue meanwhile.

Source: PublicInvest Research - 2 May 2017
02/05/2017 12:15
njue76 4.20-4.35...tunggu q1 baru 4.40-4.60
11/05/2017 15:08
njue76 Q3
03/06/2017 15:35
dfsbipohsch NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS) : BONUS ISSUES SCGM BHD (SCGM OR COMPANY) (I) PROPOSED BONUS ISSUE OF SHARES; AND (II) PROPOSED BONUS ISSUE OF WARRANTS COLLECTIVELY, THE "PROPOSALS")

SCGM BHD

Type Announcement
Subject NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS)
BONUS ISSUES
Description SCGM BHD (SCGM OR COMPANY)

(I) PROPOSED BONUS ISSUE OF SHARES; AND

(II) PROPOSED BONUS ISSUE OF WARRANTS

COLLECTIVELY, THE "PROPOSALS")
Unless otherwise defined in this announcement, all terms used herein shall have the same meaning as those defined in the earlier announcement in relation to the Proposals dated 28 April 2017.

On behalf of the Board, M&A Securities wishes to announce that the additional listing application and the draft circular in relation to the Proposals has been submitted to Bursa Securities.



This announcement is dated 23 May 2017.





Announcement Info
Company Name SCGM BHD
Stock Name SCGM
Date Announced 23 May 2017
Category General Announcement for PLC
Reference Number GA1-23052017-00058
06/06/2017 16:00
dfsbipohsch SCGM: “Sure Can” Growth Model
Author: HauToInvest | Publish date: Mon, 5 Jun 2017, 07:51 PM

When we consume packaged food and drinks, we seldom notice the manufacturers of the packaging and their businesses. SCGM Bhd (SCGM:KLS, stock code: 7247) are factories in Malaysia that process input materials such as PET, PP and transform them into consumer products in food packaging. SCGM is a very typical Malaysian founder-operated business that started almost from scratch to eventually listed in the main market in KLSE. Here is a nice corporate milestones captured from its annual report 2016.

http://klse.i3investor.com/blogs/hautoinvest/124726.jsp
06/06/2017 16:05
dfsbipohsch [SCGM] Change In Substantial Shareholder's Shareholding - KUMPULAN WANG PERSARAAN (DIPERBADANKAN) on 07-Jun-2017
Date of Change Type Number of Shares
05-Jun-2017 Disposed 12,900

Total no of securities after change
Direct (units) 6,024,650
Direct (%) 4.15
Indirect (units) 1,660,700
Indirect (%) 1.14
Total (units) 7,685,350
Total (%) 5.29
Date of Notice 07-Jun-2017
08/06/2017 12:47
stockmanmy buy sure no regret.
08/06/2017 12:51
8085208 break b4 highest 1st
08/06/2017 13:24
dfsbipohsch [SCGM] Change In Substantial Shareholder's Shareholding - KUMPULAN WANG PERSARAAN (DIPERBADANKAN) on 16-Jun-2017
Stock [SCGM]: SCGM BHD
Announcement Date 16-Jun-2017
Substantial Shareholder's Particular:
Name KUMPULAN WANG PERSARAAN (DIPERBADANKAN)
Address LEVEL 36, INTEGRA TOWER, THE INTERMARK 348, JALAN TUN RAZAK, KUALA LUMPUR 50400 Wilayah Persekutuan Malaysia.
Details of Changes:
Currency -
Date of Change Type Number of Shares
13-Jun-2017 Acquired 110,400
Registered Name KUMPULAN WANG PERSARAAN (DIPERBADANKAN)
Registered Address LEVEL 36, INTEGRA TOWER, THE INTERMARK, 348 JALAN TUN RAZAK, 50400 KUALA LUMPUR.
Nature of Interest Indirect Interest
Shares 0
Reason ACQUISITION OF SHARES IN OPEN MARKET BY KWAP'S FUND MANAGER
Total no of securities after change
Direct (units) 6,024,650
Direct (%) 4.15
Indirect (units) 1,771,100
Indirect (%) 1.22
Total (units) 7,795,750
Total (%) 5.37
Date of Notice 15-Jun-2017
18/06/2017 16:47
dfsbipohsch SCGM - Another Set of Record Earnings
Date: 22/06/2017
Source : PUBLIC BANK
Stock : SCGM
Price Target : 4.26 | Price Call : BUY
Last Price : 4.12 | Upside/Downside : +0.14 (3.40%)

SCGM registered core earnings of RM23m for FY17, an increase of 15% YoY. The new level of record earnings was helped mainly by encouraging local sales in its food packaging products. The results were in line with our and consensus forecast. Sales from extrusion, medical and ‘others’ segment outperformed with a 74% YoY growth, spurred by additional production lines while the food & beverage segment grew 12.4% YoY. A fourth interim dividend of 2sen was declared for the quarter. Pending further management guidance from the analyst briefing this coming Friday, we maintain our Outperform call with an unchanged TP of RM4.26 based on 21x FY18 EPS.
• 4QFY17 revenue jumped 62.8% YoY. The Group registered an encouraging growth of 62.8% YoY to RM52.9m in 4QFY17 on the back of better plastic packaging product sales from local demand (+89.5% YoY) while the export sales market also grew (+24.9%). Local sales made up 68% during the quarter compared to 59% in 4QFY16. Thermoform lunchboxes was the key growth driver for the Group as it contributed about RM8m (3QFY17: RM10.3m, 2QFY17: RM2m, 1QFY17: RM1.4m), helped by the enforcement of the ban of polystyrene food boxes in several states, namely, Johor, Perak, Selangor, Melaka, KL and Penang.
• 4QFY17 core earnings (QoQ: -15%, YoY: +50%). Stripping out foreign exchange gains, the Group’s core earnings surged 50% YoY to RM5.1m in 4QFY17, mainly driven by improved sales from its plastic packaging products. Gross earnings margin fell from 15.4% to 12.3% however as operating expenses jumped 68.7% YoY attributed to an increase in resin cost, depreciation of property, plant and equipment, electricity cost and packaging materials.
• Setting higher standard for its products. Management has put in a new line of degradable food packaging in June. It also introduced environmentally-friendly degradable food packaging into the Malaysian market. Its “Benxon” brand of thermoform lunchboxes have started carrying the Eco-Label mark, which will make it a more competitive brand name in the overseas markets.
• Maintain Outperform call. We like the company for its i) recession-proof business, ii) substantial capacity expansion in the pipeline and iii) double digit growth in the biodegradable plastic packaging products for the next few years.
Source: PublicInvest Research - 22 Jun 2017
22/06/2017 21:42


 

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