SEREMBAN ENGINEERING BERHAD – SEB ( 5163)

Company Profile

SEREMBAN ENGINEERING BERHAD (formerly known as Seremban Engineering Sdn. Bhd.) was initially formed to cater for the needs of automobile industries specializing inregrinding crankshaft, reboring cylinder blocks, skimming cylinder heads, rebushing cylinder head valve seats and all kinds of precision machining works.

After that, SEB has taken the cue, expanded and diversified its operation into other areas notably in the construction and engineering support for latex glove plants, rubber processing factories, palm oil mills, ceramic factories, food processing plant and quarry operations. SEB also ventured into general industries construction, maintenance and shutdown works.

SEB has excellent track record clients backed by

Berger Paints, Wembley Rubber Products, De Smet, Kumpulan Guthrie, Golden Hope, Nestle, Sime Darby, SKF Bearing, Baerlocher, Johnson Matthey, Metek Kitamura

Major overseas clients

Kansai Paint – Japan, Chiyoda Corporation – Japan, Boustead International Heaters Limited – U.K., Stein Atkinson Stordy – England, Ansell – Thailand, Ansell – Sri Lanka, Lipico Technologies – Singapore, etc.

SEB's 5 years Financial Performances 

Company Outlook From Annual Report 2016

News For SEB 

http://www.thesundaily.my/news/2068675

http://www.thestar.com.my/business/business-news/2015/10/28/seremban-engineering-bucks-the-market-trend/

Seb’s price limit on 27^th OCT 2015

Quoting a SEB director, the report noted that SEB, which is 65%-controlled by Success Transformer Corp Bhd, would start contributing profits again to the latter next year after it stopped doing so since the last financial year largely because of the cost overruns.
 

SEB turn into profit since last two quarter

Review of performance

The current quarter results showed Group revenue of RM22.26 million and a net profit after taxation after noncontrolling interest of RM1.07 million as compared to a revenue of RM21.95 million and loss after tax after noncontrolling interest of RM2.97 million in the corresponding quarter in the previous financial year. The improvement in the current quarter is mainly due to the profit contribution from projects with better project management control and recovery of impaired debts.

Technical Analysis

As 12 May 2017, SEB closed at 0.71.

SEB’s price breakout at 0.58 with volume on 5th May 2017. After that, it broke the resistance at 0.685 and hit the high at 0.75 on 9^th May 2017. It indicated that its correction phase or retracement had come to an end. Its immediate support level is located at 0.685. Once it breakout from its current resistance level at 0.77 SEB is expected to test its high at 0.83 and historical high at 0.87.

Conclusion

In no doubt, the cost over-run on the Sabah Ammonia Urea (“SAMUR”) project for last two years was overcome with the strategies as per mentioned above. SEB was turned into profit since second half of the year 2016, it might doing better in year 2017 with order books worth approximately RM50 million for the first half of the financial year 2017. SEB is also exploring other opportunities by securing “turnkey” order books from bigger projects that include power plants, new petrochemical plants, pharmaceutical industry and high volume structural steel and shop piping fabrication works. With the recent share price surged, believe that company will report a good quarter result in this month.

Technically, SEB is currently waiting for the confirmation to breakout from its previous high at 0.77. Once the breakout had been confirmed, it may test its historical high at 0.87 in matter of time.