Maybe time to buy today last call for 2016
Cheers Everyone TGIF

hope more action on the way

Read full article at: http://www.thestar.com.my/business/business-news/2016/12/24/focus-on-oil-and-gas-producers-not-vessel-operators/

The two companies that offer the cheapest entry prices are Hibiscus Petroleum Bhd and Reach Energy Bhd.
In spite of its past troubles, Hibiscus, which operates the Anasuria Cluster in the North Sea in United Kingdom, produced over 3,400 bpd during its latest quarter ended Sept 30, 2016.
The company reported a pre-tax profit of RM7.48mil on the back of RM54.75mil in revenue for the quarter mainly from the crude sales. In a previous exchange filing, Hibiscus disclosed that the barrels of crude from the cluster were sold at a realised price of US$45.21 per barrel.

Saturday, 24 December 2016
Focus on oil and gas producers, not vessel operators
BY AFIQ ISA - THE STAR

MALAYSIAN companies with oil producing assets are the clear beneficiaries of the recent global oil pact by major producers to cut down oil production.
The initiative, which was spearheaded by the Organisation of the Petroleum Exporting Countries (Opec) and involved both Opec members and non-member countries, will see a reduction of around 1.76 million barrels per day (bpd) from the global output beginning next year.
As part of the pact, on Dec 21 Petroliam Nasional Bhd (Petronas) announced that it is cutting down production by up to 20,000 bpd.
While it is clear that Opec members have two ever-present objectives – to raise oil prices and maintain its market share – the effectiveness of its efforts will be seen as early as over the next few months.
According to a recent report by the International Energy Agency, the global oil market could show a shortfall of 600,000 bpd early next year due to the expected increase in oil demand while total production becomes lower.
Enra Group Bhd president and group CEO Datuk Mazlin Junid believes that oil prices will be capped at the US$60 level for the time being.
“There are so many variables that impact the price of oil for different parts of the world. Conventional oil is made up of offshore and onshore production, and they have vastly different production costs. But then there is unconventional production such as shale oil which does not fall into the production cutback, and the US aims to kickstart production after Donald Trump gets into office. Interesting times ahead,” he explains.
At the same time, the outlook remains bleak for companies in the offshore services industry. Companies in this segment continue to face threats that have plagued industry players over the past two years, namely the underutilisation of vessels as well as rock bottom charter rates.
“Normally it will take about six months of price stability until new exploration and drilling contracts are tendered. Some players can rely on the maintenance contracts, but this will not improve overall utilisation as there is still an oversupply of vessels,” says a CEO of another oil and gas firm.
This means that bullish investors should opt for companies which own or operates oil and gas assets as their revenue base will head higher in line with improved crude prices.
The two companies that offer the cheapest entry prices are Hibiscus Petroleum Bhd and Reach Energy Bhd.
In spite of its past troubles, Hibiscus, which operates the Anasuria Cluster in the North Sea in United Kingdom, produced over 3,400 bpd during its latest quarter ended Sept 30, 2016.
The company reported a pre-tax profit of RM7.48mil on the back of RM54.75mil in revenue for the quarter mainly from the crude sales. In a previous exchange filing, Hibiscus disclosed that the barrels of crude from the cluster were sold at a realised price of US$45.21 per barrel.
Meanwhile, Reach, which had recently received shareholder approval to buy a stake in an onshore field in Kazakhstan, could benefit from the same angle.
The company will purchase a 60% stake in Palaeontol BV, which is the owner of the Emir-Oil LLP field for a sum of US$154.9mil. The field has four producing fields, two development fields and six drillable prospects.
Reach had previously disclosed that the field will have the capability to double its oil production to 12,000 bpd by next year.
At the other end of the scale, the blue-chip SapuraKencana Petroleum Bhd is a promising proxy for those with a positive view on the direction of oil and gas prices.
Among the group’s key assets are several gas fields in offshore Sarawak which will begin production in 2018.
In a note, CIMB Research says SapuraKencana will enjoy a major uplift in profits once the gas fields begin operations.
This is because gas from these two blocks are sweet and relatively inexpensive to develop, while Petronas is a ready buyer for the commodity, it says.
In a recent note, Maybank IB Research says there are good reasons to stay optimistic and stay invested over the next six month.
The firm has upgraded its outlook on the sector to “positive” from “neutral” previously in light of Opec’s long-term output cut.
“With most stocks having de-rated and much of their values lost, in our view now is a opportune time to bottom-fish with much trading opportunities for a sector which has been sidelined for a while,” it says.
The research house has also upgraded its target prices for four stocks with a “buy” call, namely Dialog Group Bhd, SapuraKencana, Wah Seong Bhd and Barakah Offshore Petroleum Bhd.

maybe higher see afternoon

• 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%.

close at 0.36
all 0.36 taken up tow 0.38

HIBISCS (Not Rated). With the sentiment returning towards the local O&G sector, HIBISCS has also been attracting active trade in recent months. Yesterday, HIBISCS rose to a 12-month high of RM0.345 (up 2.5 sen or 7.8%) for the day on high volume of 92.0m shares. Chartwise, HIBISCS is on a positive trend after the share price broke out of a sideways band between RM0.18-RM0.22 in October. Despite a healthy pullback in November, the share price was quick to resume its prior uptrend with key indicators such as the MACD staging a bullish crossover and RSI on an upwards climb. As such, we expect the share price to remain biased to the upside from here. Any weakness towards RM0.315/RM0.33 (S1) support can be viewed as an opportunity to enter. Immediate resistances to look out for are RM0.35 (R1) and RM0.375 (R2) beyond.

Source: Kenanga Research - 15 Dec 2016

Potential Momentum Stocks - 13 Dec 16
Stock Name: HIBISCS (5199)
Entry: Buy above RM0.305
Target: RM0.335 (9.8%), RM0.365 (19.7%)
Stop: RM0.295 (-3.3%)
Shariah: No
Technical: Flag-formation breakout

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

SCGM Berhad - 1H17 Within Expectation –

Source: Kenanga Research - 9 Dec 2016

1H17 core earnings of RM10.7m was within our expectation (46%). A second interim dividend of 2.0 sen is also on track (50%). Maintain FY17-18E of RM23.2-30.1m. The company expects to grow capacity by 44% in FY17 and by 2.5x to 62.6k MT/year by FY19, while we estimate capex of RM47-43m in FY17-18E. Maintain OUTPERFORM and TP of RM3.81 on decent total returns of 17%.
1H17 core net profit of RM10.7m is within our expectation, achieving 46% of our FY17E estimate, while consensus estimates are lacking. Second interim dividend of 2.0 sen was declared, bringing 1H17 dividend to 4.0 sen (50%). This is well on track to meet our FY17E dividend of 8.0 sen (2.4% yield).
Result highlights. QoQ, CNP was up by 3% on the back of positive top line growth (11%) mainly from local as well as export demand, with local sales driven by higher orders of lunch boxes and disposable cups. However, this was muted by decreased interest income and s slightly higher tax rate. YoY-Ytd, CNP saw a significant improvement of 23%, mostly on positive top line growth due to similar reasons mentioned above coupled with a lower effective tax rates of 15.6% (from 17.8%) due to the utilisation of capital allowances and reinvestment allowances.
Outlook. The company intends to increase its capacity by 44% to 36.0k MT/year by Dec 2016 as they will be renting a 20k square foot (sq ft) facility in Kulai to house 2 new extrusion machines which we have accounted for in our estimates. Longer-term expansion plans include a new plant targeted for completion in FY19, which will boost production capacity by 2.5x to 62.6k MT/year. All in, the Group expects to spend RM136.8m for its capex plans, while we expect capex allocation of RM47-43m in FY17-18E. Note that we make no changes to our FY17-18E of RM23.2-30.1m.
Maintain OUTPERFORM with TP of RM3.81 based on a Fwd. PER of 19.9x applied to CY17E EPS of 19.2 sen. Our Fwd. PER of 19.9x is based on a slight discount to SLP’s Fwd. PER of 21.5x with a potential total returns of 17%. We continue to maintain our OUTPERFORM call on SCGM for its: (i) strong FY17-18E earnings growth of 15-30%, (ii) medium- and long- term extrusion capacity expansion, (iii) new F&B container market opening up on state-wide polystyrene container ban, and (iv) being a beneficiary of higher USD, with USD-denominated sales and RM-denominated costs.
Risks to our call include; (i) higher-than-expected resin cost, (ii) weaker product demand from overseas (47% of sales), (iii) foreign currency risk from strengthening Ringgit, and (iv) new entrants/competition biting into its market share
Source: Kenanga Research - 9 Dec 2016

tow 0.34

Hibiscus Petroleum: Looks at valued solutions to enhance production, control cost. Hibiscus Petroleum has unveiled some business plans to welcome 2017 and stay profitable, and the key includes enhancing production in its main asset, Anasuria Cluster, said MD Kenneth Pereira. For the 1Q ended Sept 30 2016, the O&G company’s net profit rose to RM80.28m from RM4.75m a year ago due to the sale of O&G products from the Anasuria Cluster. (StarBiz)

maybe want to test our patience

• LATEST NEWS, CORPORATE
Minetech gets RM24m two-year extension on Pahang gold mine job
By Gho Chee Yuan / theedgemarkets.com | October 26, 2016 : 6:45 PM MYT

KUALA LUMPUR (Oct 26): Minetech Resources Bhd will have two more years to provide waste removal, ore delivery and associated services for an open pit gold mine in Pahang — the Selinsing Gold Mine — for RM24 million.
Minetech's wholly-owned unit Minetech Construction Sdn Bhd inked the contract renewal today, via two separate agreements, with Able Return Sdn Bhd and Damar Consolidated Exploration Sdn Bhd.
The extension, the second after the original contract was inked in 2009, began on July 1 this year, according to Minetech's bourse filing today.
"The contracts are expected to contribute positively to the future earnings of the group," it added.
Minetech first clinched the job, a three-year deal, from Selinsing Gold Mine Manager Sdn Bhd on May 25, 2009, for RM37 million. The mine is at Bukit Selinsing, Pahang.
Subsequently, on Oct 2, 2014, it announced the deal had been extended for two years for RM42.37 million.
Shares in Minetech closed unchanged at eight sen, with a market capitalisation of RM52.13 million.

SCGM (Not Rated). SCGM has been consolidating over the past one month, after staging a strong rebound from its sell-down in August. Yesterday, the stock rose 8.0 sen (2.49%) to stage a breakout (above RM3.28 level) from its sideways consolidation pattern to close at RM3.29 on higher trading volume observed. Should the stock manage to hold above the RM3.30 level, the stock could look to gear higher towards RM3.38 (R1) and possibly the target objective of RM3.60 (R2) in the near-to-mid term. Failure to settle above the RM3.30 level soon could result in the stock regressing towards RM3.20 (S1) and possibly further south at RM3.00 (S2).Thus, interested investors could look to opt out of the stock if the S1 level is broken to prevent further losses from the share price retracement.
Source: Kenanga Research - 14 Oct 2016

LATEST NEWS, CORPORATE
Minetech gets RM8.55m reinforced concrete structure job from Gamuda
By Gho Chee Yuan / theedgemarkets.com | October 4, 2016 : 8:01 PM MYT

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KUALA LUMPUR (Oct 4): Minetech Resources Bhd has bagged a RM8.55 million contract from Gamuda Bhd to perform reinforced concrete structure and associated works for an affordable housing development in Selangor.

In a bourse filing today, Minetech said its unit Minetech Construction Sdn Bhd has accepted the letter of award from Gamuda Engineering Sdn Bhd for the appointment as the job's subcontractor.

Gamuda Engineering is a wholly-owned subsidiary of Gamuda.

"The works of the contract will be carried out and completed in 10 months from Aug 18 this year," said Minetech.

"The contract is expected to contribute positively to the future earnings and net assets per shares of the Minetech Resources," it added.

Shares in Minetech closed unchanged at eight sen today, for a market value of RM52.13 million.

Wow Arank result superb! Meletup! 3 cent dividend! Tomorrow gap up RM 1.0 coming!

http://www.theborneopost.com/2016/09/25/chipmakers-gearing-up-for-more-orders/

Minetech: To build bridge connecting You City and Grand Saga Highway for RM16.1m. Minetech Resources has been tasked to build a connecting bridge between PJ Development Group's You City in Cheras and the Grand Saga Expressway for a contract sum of RM16.1m. Aside from constructing the connecting bridge, Minetech said its unit has also been tasked to upgrade Jalan Kinabalu, Jalan Kijang, and Jalan Taman Suntex in Cheras. The contract was for a contract period of 20 months, commencing from Sept 15 and to be completed on May 14, 2018. (Financial Daily)

Minetech: To build bridge connecting You City and Grand Saga Highway for RM16.1m. Minetech Resources has been tasked to build a connecting bridge between PJ Development Group's You City in Cheras and the Grand Saga Expressway for a contract sum of RM16.1m. Aside from constructing the connecting bridge, Minetech said its unit has also been tasked to upgrade Jalan Kinabalu, Jalan Kijang, and Jalan Taman Suntex in Cheras. The contract was for a contract period of 20 months, commencing from Sept 15 and to be completed on May 14, 2018. (Financial Daily)

SCGM gap up today

https://www.facebook.com/tonyfernandes/posts/823663427733497:0

QR shld be out on 23.08.16

any good news during the AGM today

Though SCGM’s share price has performed favourably over the last 2 years, rising more than 132%, we see further upside opportunity in the company riding on i) aggressive expansion plans in the pipeline, ii) introduction of more new products mix in plastic cups and iii) increasing regulatory bans on polystyrene packaging in Malaysia, which would further drive up the demand for its plastic-based food packaging products. We initiate SCGM with an Outperform call and TP of RM4.00 based on FY18 PER of 21x.

Background. SCGM, founded in 1984, is a thermo-vacuum form plastic packaging manufacturer, which provides end-to-end production from extrusion to packaging and delivery to its customers in Malaysia and overseas. Its manufacturing plant, which is located in Kulai, Johor, has 8 extrusion machines with daily capacity of 40m. It currently runs at 85% utilization rate. The Group has produced more than 5,000 moulds under its brand names called Benxon, TempScan, TempScan Cover and Kingtex to cater for more than 60 notable brands from various sectors, including food, medical and electronics. Riding on the expansion of its distribution network and coupled with a stronger US dollar, its exports sales picked up aggressively, making up 49% of the total sales compared to 30% in FY12.

Aggressive expansion plans in the pipeline. The Group has allocated RM113.9m capex for the next 3 years to increase its extrusion production capacity by 194% (from 16.8m kg/year to 49.5m kg/year). It is expected to be completed by FY19 and the full-year earnings contribution will kick in by FY2021. The new manufacturing plant will include 8 thermoforming machines, 4 extrusion machines and 1 plastic cup machine. Besides that, it has recently appointed Kim Teck Cheong Consolidated to be its sole distributor, which controls 6,419 distribution points in East Malaysia, to market its “Benxon” brand food packaging and plastic cups to food and beverage (F&B) retailers and manufacturers. It has also invested RM15m to increase its production capacity by 34% to 22.5m kg/year, which helps to cater for new demand from Cambodia, Laos and South Pacific Ocean markets.

Decent historical growth. As at FY16, the company has a net cash of RM25m. The Group has a 40% payout dividend policy but has been paying more than 65% over the last 3 years, which translates to a dividend yield of 3.1% at current share price. Management has guided that it plans to gear up its balance sheet to fund its staggering capex of RM113m over the next 3 years. The Group’s earnings recorded an encouraging CAGR of 27.9% over the last 8 years. Though it is trading at a FY16 PER of 20.6x, which is unattractive, we think that the company should deserve better valuations given its strong capacity growth as well as its leading position in plastic packaging industry. We expect the company to grow at an average of 10%-20% p.a. over the next 3 years before a larger growth kicks in.

Source: PublicInvest Research - 28 Jul 2016

maybe something good going on

close at 7,83 and hope will continue after lunch QR coming shld be good

hope tow can break 8.00 before ex. on 19.07.16

today KTC got action

http://www.freemalaysiatoday.com/category/nation/2016/07/11/airasia-eyes-hk-listing-as-it-expands-in-north-asia/

That great

http://klse.i3investor.com/blogs/kenangaresearch/99700.jsp

then we shld keep even after ex. div. The last div paid out is on 28.08.15 at RM322.00 per share. now paid-out is RM403.10 which is very good.

then will be above RM8.00

http://klse.i3investor.com/blogs/kimstockwatchfajar/99482.jsp

Hope tomorrow will continue n break 8.00

That great n will buy some more in order to enjoy the coming 10.00

today close at 3.55 and hope tow will go up again since DOW futures jump 200 points as global markets steady after Brexit selloff

today close at 7.76 and tow will be more than 7.80 since DOW futures jump 200 points as global markets steady after Brexit selloff

BRIEFING NOTE - SCGM Bhd
Author: MalaccaSecurities | Publish date: Mon, 27 Jun 2016, 10:10 AM

Results Update
SCGM BHD recorded a lower 4QFY16 net profit of RM3.5 mln vs. Tm5.1 mln in 4QFY15. Revenue for the quarter, however, rose 25.6% Y.o.Y to RM32.5mln.

For FY16, cumulative net profit grew 30.6% Y.o.Y to RM20.2mln, while revenue for the period increased 25.2% Y.o.Y to RM133.5mln, which comprises of 52.9% and 47.1% in local and export sales respectively.

Future Plan
Will invest RM113.8mln in capex over the next three years for a new manufacturing facility–source of the said amount would come from internally generated funds, bank borrowings and capital markets. Meanwhile, the new manufacturing facility would be built on a new 7.8ac. land in Kulai, Johor and SCGM will see the addition of new machineries such as eight thermoforms, four extrusions and a cup machine.This will increase the extrusion capacity by 194.0% to 49.5mln kg per annum vs.16.8mln kg on a year.

Investment Highlights
SCGM is an established leader in the thermo-form packaging with strong brand name locally and globally. Also, it has an extensive variety of thermo-form packaging with a recession proof customer base. Valuationwise, the company’s current PER valuation of 21.3x is significantly higher than its 5-year average PER of 11.8x.

Meanwhile, the company has a dividend policy of at least 40.0% from the group’s net profit. For FY16, SCGM declared its fourth interim dividend of 2.0sen per share, payable on 27thJuly2016, bringing its total dividend to 10.0sen. The company is still in a net cash position, whileits FY16 net asset stood at RM0.84 per share, which translates into a 37.7% Y.o.Y gain (from RM0.61 in FY15), mainly attributable to the private placement exercise and excess net operating cash flow.

Source: M+ Online Research - 27 June 2016

BRIEFING NOTE - SCGM Bhd
Author: MalaccaSecurities | Publish date: Mon, 27 Jun 2016, 10:10 AM

Results Update
SCGM BHD recorded a lower 4QFY16 net profit of RM3.5 mln vs. Tm5.1 mln in 4QFY15. Revenue for the quarter, however, rose 25.6% Y.o.Y to RM32.5mln.

For FY16, cumulative net profit grew 30.6% Y.o.Y to RM20.2mln, while revenue for the period increased 25.2% Y.o.Y to RM133.5mln, which comprises of 52.9% and 47.1% in local and export sales respectively.

Future Plan
Will invest RM113.8mln in capex over the next three years for a new manufacturing facility–source of the said amount would come from internally generated funds, bank borrowings and capital markets. Meanwhile, the new manufacturing facility would be built on a new 7.8ac. land in Kulai, Johor and SCGM will see the addition of new machineries such as eight thermoforms, four extrusions and a cup machine.This will increase the extrusion capacity by 194.0% to 49.5mln kg per annum vs.16.8mln kg on a year.

Investment Highlights
SCGM is an established leader in the thermo-form packaging with strong brand name locally and globally. Also, it has an extensive variety of thermo-form packaging with a recession proof customer base. Valuationwise, the company’s current PER valuation of 21.3x is significantly higher than its 5-year average PER of 11.8x.

Meanwhile, the company has a dividend policy of at least 40.0% from the group’s net profit. For FY16, SCGM declared its fourth interim dividend of 2.0sen per share, payable on 27thJuly2016, bringing its total dividend to 10.0sen. The company is still in a net cash position, whileits FY16 net asset stood at RM0.84 per share, which translates into a 37.7% Y.o.Y gain (from RM0.61 in FY15), mainly attributable to the private placement exercise and excess net operating cash flow.

Source: M+ Online Research - 27 June 2016

now 7.73

close at 7.60

this counter seem ok and not much drop

wah so geng then can still go in

how abt me my email address : dfsbipohsch@gmail.com
TQ

http://www.theedgemarkets.com/my/article/scgms-4q-profit-falls-33-declares-2-sen-dividend

LATEST NEWS, CORPORATE
SCGM's 4Q profit falls 33%, declares 2 sen dividend
By Kamarul Anwar / theedgemarkets.com | June 23, 2016 : 11:05 PM MYT
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KUALA LUMPUR (June 23): SCGM Bhd’s profit for the fourth quarter ended April 30, 2016 (4QFY16) fell by 32.61% year-on-year to RM3.46 million or 2.62 sen per share due to weaker ringgit, higher depreciation charges, and bigger finance costs. Revenue increased by 25.58% to RM32.49 million.

Its filing with Bursa Malaysia today said the top-line growth in the quarter was mainly due to higher sales demand in its plastic packaging products.

This is the first year-on-year drop in SCGM’s quarterly net profit since 3QFY13. Nonetheless, the company has declared its fourth interim single-tier dividend of two sen a share in the quarter, bringing the full-year dividend to 12 sen per share.

SCGM’s FY16 net profit was up by 30.65% year-on-year to RM20.19 million or 16.16 sen a share due to higher sales. Its revenue for the year came to RM133.51 million, 25.2% higher from the previous corresponding year’s RM106.63 million.

“The group has secured 110 new domestic customers as well as 19 new overseas customers during the financial year, which spurred the demand for new sales. In addition, higher demand for our existing customers contributed to the significant increase in group’s turnover,” said SCGM.

It said it is confident its performance will be on a steady growth in FY17, despite challenging times ahead. The discouragement use of polystyrene foam will increase demand from its customers who sought other alternatives to enhance their product mix such as lunchboxes.

“[The] introduction of our new two-coloured extrusion machine and press forming machine will further contribute significantly to the overall group earnings,” SCGM added.

The stock has jumped by over 16% in just a week. Today, it closed 17 sen or 4.94% higher at RM3.61, with a volume of 666,600.

SCGM is valued at RM476.52 million, or 22.34 times its FY16 earnings.

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