Be the first to like this.

1 comment(s). Last comment by ahbi 2018-07-13 17:07


24 posts

Posted by ahbi > 2018-07-13 17:07 | Report Abuse

Bad news for SCGM

'Moving forward, SCGM expects to record flattish yoy results in FY19. This is due to the impact of the transition from its old plants to its new plant. Despite an expected increase in sales as the group ramps up new capacity from its new plant, SCGM said that higher depreciation charges and an increase in interest expenses would weigh on its earnings. However, SCGM said it expects earnings to grow significantly from FY20 onwards, as the group hits optimum utilisation rates for the new plant. Also, net margin is expected to hover at around 5-9% in FY19 before improving to 8-10% in FY20, according to management'.

CIMB Sector Note on July 6, 2018.

Post a Comment
Market Buzz