Posted by Joel > 2014-04-23 19:49 | Report Abuse

Goodwill amortisation ends in FY15
SBC’s pretax profit would have been much higher in the past few years if not for
the amortisation of goodwill arising from the acquisition of a stake in the
property firm, Mixwell S/B. SBC’s amortised goodwill was RM5.5m in FY12 and
RM5.4m in FY13. In 9MFY14, SBC’s amortised goodwill was RM5m. The
outstanding goodwill amortisation should end in FY15, resulting in an
immediate pretax profit boost in FY16.

Posted by Joel > 2014-04-23 19:50 | Report Abuse

Healthy balance sheet
In Dec 2013, SBC completed a 1:2 bonus issue and a 3:5 rights issue, which
raised proceeds of RM49.4m. This lowered the company’s net debt to RM62m
or 0.2x net gearing. Most of its borrowings are used to fund its working capital
needs as its current landbank was acquired many years ago. Land cost for
Jesselton Quay will only gradually be paid to Suria Capital once SBC’s sales
launches start.

Posted by Joel > 2014-04-23 19:50 | Report Abuse

Dividend policy
Earlier this year, SBC declared a dividend policy of at least 20% payout of its
net profit annually. Based on this, the company could pay a DPS of around 5
sen (2.8% dividend payout ratio) from FY15 onwards.

Posted by Joel > 2014-04-23 19:50 | Report Abuse

VALUATION AND RECOMMENDATION
5.1 Under-researched
SBC is under-researched as only one research house currently covers the stock.
We believe that this is mainly due to the company’s low profile. However,
management is cognisant of this and aims to raise the company’s profile. In
addition, the Jesselton Quay project is expected to start this year. We think that
it is only a matter of time before SBC is on the investors’ radar screen.

Posted by Joel > 2014-04-23 19:50 | Report Abuse

Residential development focused on mid-range segment
We anticipate strong demand for SBC’s residential projects, Kiara East and
Bandar Ligamas. The average selling price of only RM0.3m-0.8m per unit in
Bandar Ligamas is affordable and comparable to the prices of similar
mid-range properties in the Klang Valley. As for Sabah, we think that there will
be robust demand for Jesselton Quay and The Peak condos due to their
strategic locations in Kota Kinabalu.

Posted by Joel > 2014-04-23 19:51 | Report Abuse

Highest GDV/market cap ratio
Among the property stocks under our coverage, SBC offers the highest
GDV/market cap ratio at 22.1x, followed by E&O at 16.6x. In our view, this
shows that the stock has potential value to be unlocked.

Posted by Joel > 2014-04-23 19:51 | Report Abuse

Huge discount to RNAV; initiate with Add rating

SBC is trading at a huge discount of 72% to our RM6.60 RNAV/share estimate
and a 52% discount to its current RM3.89 net assets/share. We initiate
coverage on SBC with an Add rating and a target price of RM3.96, based on a
40% discount to its RNAV. This is broadly in line with the 30-40% RNAV
discounts we apply to other small-cap property stocks. Big-cap property stocks
under coverage are valued at 0-30% discounts to RNAV. We think that it is only
a matter of time before SBC’s RNAV discount narrows as more investors come
to understand the company’s potential. The potential catalysts for the stock are
the start of the Jesselton Quay project and the current huge discount to its
RNAV/share.

Posted by Joel > 2014-04-23 19:52 | Report Abuse

Rising long-term trend to continue

SBC’s monthly chart shows that its share price uptrend is expected to continue
and the next major resistance trendlines are only at RM2.60 and RM4.20.

The
weekly chart shows an immediate resistance trendline at RM1.83, which was
recently taken out, which is positive. The next resistance trendline is at
RM2.60.

Posted by heng88 > 2014-04-24 07:20 | Report Abuse

Many thanks Joel for your sharing...wher do you get these information? wau..so amazing

Posted by heng88 > 2014-04-24 07:20 | Report Abuse

you really put a lot of effort on this, really a good investor..:)

Posted by heng88 > 2014-04-24 07:24 | Report Abuse

Coz now the market in on the bull, so i bought it at high price at RM 2.44

Posted by Stevecheahsw > 2014-04-24 10:35 | Report Abuse

Heng88, I bought 2.40. Haha

Posted by Joel > 2014-04-24 12:03 | Report Abuse

FR internet. CIMB research reports !

Posted by sklyte > 2014-04-24 12:05 | Report Abuse

hold guys!! SBC is one of the top gem for RHB small cap 2014... you will be rewarded heavily

Posted by heng88 > 2014-04-24 12:34 | Report Abuse

:), after hearing this, feel better, cheers:)

Posted by colin888 > 2014-04-24 15:53 | Report Abuse

at 2.4 it is a good buy. Technical chart shows that it is bullish if it does not break 2.38 at day close.

Posted by KiaSu > 2014-04-24 22:40 | Report Abuse

I bought at 2.41 for day close Haha...................

Posted by colin888 > 2014-04-25 09:28 | Report Abuse

naik lagi....

Posted by Lotusf1 > 2014-04-25 18:05 | Report Abuse

What happen to jeselton projct pending approval by sabah authority..

Posted by KiaSu > 2014-04-26 00:00 | Report Abuse

How you know? please tell us if you know anything about it.O.K

Posted by KiaSu > 2014-04-26 00:03 | Report Abuse

Ada naik ada turun la.

Posted by ykgykg > 2014-04-26 16:31 | Report Abuse

Hopefully technical rebound next week as the volume has shrinked .

Posted by Joel > 2014-04-27 13:06 | Report Abuse

I hopw Monday will rebound, I bought SBC also 1 month at rm2.20.

Posted by sharem > 2014-04-27 23:06 | Report Abuse

an undervalue stock have potential to rise

Posted by huat_tat_88 > 2014-04-28 11:28 | Report Abuse

Suspect Q2 results have to come out before rally again... for msia since so biasa inside news... expect any rally/drop just 1-2 weeks prior to Q2 results announcement...

Posted by johnny > 2014-04-28 14:52 | Report Abuse

steady sbc!

Posted by wei_meng81 > 2014-04-28 17:09 | Report Abuse

drop like hell....:-(

Posted by unemployed > 2014-04-28 17:25 | Report Abuse

Today many counters drop, not only SBC Corp

Posted by Stevecheahsw > 2014-04-28 17:33 | Report Abuse

next support line 2.20

Posted by KiaSu > 2014-04-28 19:26 | Report Abuse

i yo yo drop is for shooting up,relax man.

Posted by Valueseeker > 2014-04-28 19:29 | Report Abuse

If you take this as a value stock, you must try to ignore the short term movement, otherwise, you may as well be a speculator and probably cutting loss now.

Posted by johnny > 2014-04-28 20:42 | Report Abuse

Hold tight until TP achieve.

Posted by KiaSu > 2014-04-28 23:08 | Report Abuse

Why so worry?Today I Kia Su add more lots.Come on everybody Mambo Rock now,How low can you go?

Posted by nobunaga > 2014-04-29 10:21 | Report Abuse

Today market Lao sai. :(

Posted by kaitun78 > 2014-04-29 10:31 | Report Abuse

what happen today? market very down.

Posted by excelyou > 2014-04-29 10:33 | Report Abuse

fish fish now

Posted by excelyou > 2014-04-29 10:35 | Report Abuse

Medium panic selling due to Industronics Bhd, VisDynamics Holdings Bhd and MNC Wireless Bhd

Posted by heavyth > 2014-04-29 15:31 | Report Abuse

where is the next support...??

Posted by SANG-JERO > 2014-04-29 15:36 | Report Abuse

Stop loss @ 1.92

Posted by valuemaster > 2014-04-29 16:04 | Report Abuse

What you guys worry about man, corrected to 20ma shpuld just buyyy now

Posted by phobee > 2014-04-29 16:34 | Report Abuse

I just buy 2000 units at 2.23....tomorrow, kopi money lah

Posted by stevenkau > 2014-04-29 19:00 | Report Abuse

This is a cash rich company,for longer term side,the ROE indeed generate high percentage,only fluctuate throughout short term period,if can place in longer term,should not be a problem. Shott term analysia,the 20SMA still on uptrend,and it is still above 50 SMA,so i think it is just temporary but not panic selling,even though PSAR is showing sell signal,but it just short term

Posted by KiaSu > 2014-04-29 19:46 | Report Abuse

I agree with you,but they are really good. the price press till RM2.21 but I only manage to buy 2,000 units for RM 2.23

Posted by hello123 > 2014-04-29 20:03 | Report Abuse

At last hour of trading, some people trying to press till 2.21, but failed at the end and the buying queue keep appearing till 5pm

Posted by SANG-JERO > 2014-04-30 08:41 | Report Abuse

Chart showing downtrend....Support is seen @ 1.55...1.31...

On the current date Sbc Position is Long - Moderate Buy based on Medium Term analysis and is Long - Strong Buy based on Long Term. Asset "Volatility Risk" is Medium and "Liquidity Risk" is Medium - High. In the Medium Term, Possible begin of a bearish phase only if a reversal happen. In the Long Term, Possible exaustion of the bull cycle. The stock is still moving upwards but Its strenght is decreasing.....Good Luck...

Posted by Valueseeker > 2014-04-30 08:42 | Report Abuse

Market players should try to differentiate between small cap with strong fundamentals and those which are ramped up on speculative reasons. However, during period of heavy sell down on other stocks, negative sentiments will prevail through out and therefore need to be have steady heart. :)

Posted by wongchowsang > 2014-04-30 09:24 | Report Abuse

hope today can rebound

Posted by SANG-JERO > 2014-04-30 11:01 | Report Abuse

Operator pushing down price......I guess...Good Luck

Posted by wongchowsang > 2014-04-30 11:03 | Report Abuse

when can rebound? this counter need to wait how long to achieve target price? any analysis for sbccorp? for short term holding or medium term holding?

Posted by SJaladdin > 2014-04-30 15:23 | Report Abuse

sbc down again