SOUTHERN CABLE GROUP BERHAD

KLSE (MYR): SCGBHD (0225)

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Last Price

0.545

Today's Change

-0.03 (5.22%)

Day's Change

0.53 - 0.585

Trading Volume

6,223,900


3 people like this.

1,129 comment(s). Last comment by investor2021trading 1 day ago

VTrade

2,434 posts

Posted by VTrade > 2022-11-07 00:04 | Report Abuse

Tunggu berita dari Master123

Just a Beginer123

Posted by Beginner123 > 2022-11-09 09:12 | Report Abuse

Perasan share ini suka suka 1shot berapa m shares bagi sell off or buy all......
Operator monitor kuat kuat ini...
Semalam warrant seller q banyak stacked kat 0.095 & 0.10...... today 0.090 and 0.95 pulak...... Harap boss akan jaga business jugak sementara main shares ya

mkmk

1,512 posts

Posted by mkmk > 2022-11-11 09:01 | Report Abuse

Ada kontrak baru… ini kali lah…

VTrade

2,434 posts

Posted by VTrade > 2022-11-11 11:42 | Report Abuse

Tukar Pakai Glove lagi selamat lah…

mkmk

1,512 posts

Posted by mkmk > 2022-11-11 14:16 | Report Abuse

Mahu selamat pakai kondom la…

Raiz368

1,556 posts

Posted by Raiz368 > 2022-11-14 08:27 | Report Abuse

Super undervalue stock...the fair value should be above 35 cent...

Master123

213 posts

Posted by Master123 > 2022-11-14 10:12 | Report Abuse

A bit like wasting time at this stock. Although take so many projects, and boss said how good of their capabilities and sales oso useless. Fundamental looks getting better, but shares price in downtrend.

Risk Trader

3,942 posts

Posted by Risk Trader > 2022-11-14 11:59 | Report Abuse

The price is already bottom, anytime will fly whether before or after PRU....

Raiz368

1,556 posts

Posted by Raiz368 > 2022-11-14 12:17 | Report Abuse

RT..Qtr rpt will be out by this mth shld be better result right.

Risk Trader

3,942 posts

Posted by Risk Trader > 2022-11-14 12:19 | Report Abuse

Hopefully good qtr report.

adikkici

822 posts

Posted by adikkici > 2022-11-14 14:17 | Report Abuse

Warrant ada manis2 ka

Risk Trader

3,942 posts

Posted by Risk Trader > 2022-11-14 17:01 | Report Abuse

Best entry for warrant today at 8 cent...

Haleluya

186 posts

Posted by Haleluya > 2022-11-15 08:52 | Report Abuse

Usually warrant is half of mother share.... Example, Tanco-wc at 0.125 even conversion 0.31 while mother only at 0.34.....
But this..... Sadz......

Risk Trader

3,942 posts

Posted by Risk Trader > 2022-11-15 09:03 | Report Abuse

The fair value warrant price shld be above 10 cent...

adikkici

822 posts

Posted by adikkici > 2022-11-15 09:43 | Report Abuse

Slow

adikkici

822 posts

Posted by adikkici > 2022-11-15 14:48 | Report Abuse

Mother so cold

Master123

213 posts

Posted by Master123 > 2022-11-15 15:26 | Report Abuse

Very disappointed to this counter.

adikkici

822 posts

Posted by adikkici > 2022-11-15 16:14 | Report Abuse

Bungkus ikat tepi

adikkici

822 posts

Posted by adikkici > 2022-11-15 16:27 | Report Abuse

Good FA but no fans

Haleluya

186 posts

Posted by Haleluya > 2022-11-16 09:04 | Report Abuse

SCG Bhd becoming GG Bhd

VTrade

2,434 posts

Posted by VTrade > 2022-11-16 11:29 | Report Abuse

Stunk in warrant?
Anyone soon?

Haleluya

186 posts

Posted by Haleluya > 2022-11-25 15:22 | Report Abuse

Play within range of 0.29 to 0.31?

Risk Trader

3,942 posts

Posted by Risk Trader > 2022-11-29 15:54 | Report Abuse

Buy warrant today for better return...

Raiz368

1,556 posts

Posted by Raiz368 > 2022-11-29 16:36 | Report Abuse

Yes RT, looks warrant will fly very soon...

Risk Trader

3,942 posts

Posted by Risk Trader > 2022-11-29 16:42 | Report Abuse

Tomorrow price will open gap up...

Raiz368

1,556 posts

Posted by Raiz368 > 2022-11-29 17:14 | Report Abuse

Very good quarterly report so tomorrow will fly high...

Haleluya

186 posts

Posted by Haleluya > 2022-11-30 09:14 | Report Abuse

Market opening shows it doesn't has much attractions..........

Posted by SmallSexyPig > 2022-12-01 15:06 | Report Abuse

still think this is a long term investment. i am hopeful in the near term that profits will be boosted through reduction in raw material costs (oil, copper back to pre-pandemic levels). hopefully if there are increased profits it will be passed on to the loyal investors.

VTrade

2,434 posts

Posted by VTrade > 2022-12-02 13:10 | Report Abuse

Habis

Posted by SmallSexyPig > 2022-12-06 20:46 | Report Abuse

“Malaysia’s economic reopening has restarted many projects in various sectors, and we have seen
more orders for cables and wires across the board, especially from the power utility sector.
Our recent contract wins will substantially improve our future earnings, and we are also
participating in more new tenders for power infrastructure projects in the country.

Additionally, we are seeing a normalization of key raw material prices for copper, aluminium, and
plastics, which will improve our margins. Our strong sales growth outlook will also mitigate the
impact of higher interest rates. Overall, we are optimistic of our performance in the coming
quarters, which will be supported by the firm pace of economic recovery.”

Mr. Tung Eng Hai (“陈永海”),
Managing Director of Southern Cable Group Berhad

Raiz368

1,556 posts

Posted by Raiz368 > 2022-12-10 15:56 | Report Abuse

Is to accumulate for better return. The fair value shld be above 50 cent.

Master123

213 posts

Posted by Master123 > 2022-12-13 11:51 | Report Abuse

This counter gg.com after warrant issued.

Posted by SmallSexyPig > 2022-12-13 16:20 | Report Abuse

very high selling pressure right now :-/

trader808

286 posts

Posted by trader808 > 2022-12-14 16:21 | Report Abuse

1 Upon closer examination one would notice that SCG has 800m issued share capital and a 4 rolling quarter EPS of 1.61 sen. At 30sen share price it is therefore traded at a PE price earning of 18.4x
2. The company has enormous borrowing of 191.6m term loan and 6.17m short term borrowing for a total borrowing of RM197.78m. Considering that the market capital is 236m hence, the borrowing of 197.7m represents significantly 83% of the entire company.
3.The company has a cash balance of 19.7m and generate a negative cash flow of (-29.528m) This means the company needs more cash than the business can generate. And hence, considering that it is transacting business beyond 750m annually, 19.7m cash is seriously lacking in working capital.
4. The company generate net profit between 10m to 12m a year. Because of its exceptionally high borrowings scg paid RM5.976m to the bank as interest payment.. This also means that for the 1st six months in a year the company is actually working for the banks.
5.The company had very recently gave its shareholders 400m that is 1 for 2 free warrants. Well,nothing is free in this world. What ever you have profited from the free warrant had been offset by an even bigger fall in the mother share price.
6. The exercise price of the warrant 27.5sen was intentionally set at below the mother share price to enhance its attractiveness. Upon warrant conversion years later the enlarged issued share capital would be 800m + 400m that is 1.2b shares.
7. The will be damage arising from the diminished earning per share upon fully dilution.

8. In conclusion after examining the balance sheet, profit and loss account and the cash flow statement of the company, the attractiveness of SCG may have been somewhat over rated.
14/12/22



xiaoeh

2,074 posts

Posted by xiaoeh > 2022-12-14 17:24 | Report Abuse

dear trader808, for your opinion what is the fair value for scb? thanks a million for your sharing

Posted by SmallSexyPig > 2022-12-14 22:37 | Report Abuse

i use different metrics to trader808 to judge my stocks and i have the fair price down as 35.5 sen per share.

but trader808 is 100% right about one thing and that's they need to reduce their liabilities and bank loans they've added RM100m to liabilities in the last year looking at my balance sheet.

i am interested to see how things change as material costs reduce. they need to find a way to increase profitability, adding to debt does not seem wise.

trader808

286 posts

Posted by trader808 > 2022-12-15 11:39 | Report Abuse

1. In 2021 the revenue was 659.93m and the net profit was 10.929m. therefore the net profit margin was 1.6%. for the 9-month 2022 the cumulative revenue is 637.7 and profit is 9.07m. Thus, the net profit margin is 1.56%.
2. Basing on these numbers it is reasonably safe to assume that the company's profit margin is 1.6% on less.
3. This also means it has to send out a team to do marketing to sell the cables. it needs to purchase raw material copper to produce the products, ensures its quality, delivery on time and wait 2 months to collect its payment.
4. For all this troubles and risk, SCG gets 1.6% returns on its effort. This number indicates inefficiency in resource management and non effectiveness of its capital employed.

5.To criticize constructively, brutal and unpleasant in the fiercely competitive business environment if you are unable to secure a fair return, it is better off not manufacturing and instead invest with the bank, put it in FD and earn 3% risk free rate.

Risk Trader

3,942 posts

Posted by Risk Trader > 2022-12-20 21:04 | Report Abuse

The price already at buttom, is time to accumulate and hold to next qtr result for good return.

trader808

286 posts

Posted by trader808 > 2022-12-21 23:17 | Report Abuse

1.The market PE is 13x. SCG is trading at 29 sen and a running 4-quarter earning per share EPS of 1.61 sen. Hence, it is trading at a PE of 18x. That is inordinately and disproportionately higher than the bursa PE. And that rates and ranks SCG more attractive, over and above a blue chip counter.

2 Despite its recent bonus issue of free warrant and numerous announcements of new contracts, sadly its share price has continued on its decline and its daily volume traded has severely reduced. What happens ?
3. The recent announcement that the company has secured 293m power cable supply contract with Tenage; 83m power cable supply with SEB; and its aspiration to export 100m value of cable to the US market is remarkable and commendable. The new business is 476m. Let's take a look at these letters of award and happy problems that come with a burden.

4. In the 3rd quarter ending September the company's revenue was 238m. the cost of goods sold was 225m and gross profit was 12m. Therefore the percentage of CGS and GP is 94% and 6% respectively.
5. To finance 476m new business the company would need 0.94 x 476m and that is 447m to finance raw material requirement and working capital.
6. Notice that the company has a cash balance of 19.7m and generate a negative cash flow of (-29.528m) This means the company needs more cash than the business can generate. The above new order will further aggravate the cash position and working capital requirement that is already distressed.

7 IN 2019 the company has 130m in account receivable. In 2020 the account receivable was 158m and these numbers had ballooned to 199m in 2021 and 222m in the 9- month of 2022. If you take 222m divide by the revenue of 637m multiply by 365 days, the collection period work out to be 127 days. That means it takes the company 4 months plus 7 days to collect payments after delivery. If the speed of collection can be increased and the days of collection can be reduced this would strengthen the working capital.

8. Considering the current situation in which it was awarded huge supply contract, the company has a happy problem that comes with a heavy financial burden. It is not unlikely that the company might have to look at various option to raise fund for working capital and to finance the new business.
9. The company has 197m in borrowings and 283m in total equity. Therefore the gearing is 197 divided by 283 is 69.6%. Sixty percent is considered a high gearing. By accounting standard any numbers beyond 60% signify the company has entered into a red zone

10. It will be interesting to see the next course of actions from the management. Share price will remain depressed and volume lackluster until this matter is resolved.
11. Friend. cut loss and move on. This is my personal perception of the counter.
It may or may not be correct.
21/12/22

xiaoeh

2,074 posts

Posted by xiaoeh > 2022-12-22 10:05 | Report Abuse

Thanks SmallSexyPig and trader808 for your sharing

trader808

286 posts

Posted by trader808 > 2022-12-23 11:05 | Report Abuse

1.While operating cash flow is important, free cash flow is more crucial and net cash flow is significantly more critical. Temporarily, SGC has non of the latter two. And they are the heartbeats of business.
2. This is not surprising considering that scg collects its accounts receivable calculated by taking 222m divided by 637 multiply by 365 is 127 days.
3. it pay its accounts payable with lighting speed computed as follows.
Assuming 85% of 637m is purchases or 541m the accounts payable balance is 52m.
so the AP turnovers is 541m divided by 52m is 10.4x in a year or 35days.
4. See they pay creditors in 35 days and receive money from their accounts receivables debtors in 127 days. it is almost suicidal.
5. The accountant has enormous opportunity and room for improvements. More stringent credit control and efficient strategy need to be formulated and implemented to strengthen its collection.
6. otherwise continued and prolonged negative cash flow would require new funding to address the shortfall in working capital requirement. It could be further bank borrowings or corporate exercise of fund raising through right issue or private placement. All of which are discouraged for they are value and share price destruction.

Haleluya

186 posts

Posted by Haleluya > 2023-01-03 09:59 | Report Abuse

IPO price 0.34;
Price now 0.29 + warrant 0.07/2 = 0.325
Cheaper than ipo price...

trader808

286 posts

Posted by trader808 > 2023-01-06 18:40 | Report Abuse

Disagree.
Would appreciate if you could kindly share what is fundamentally good about this company.

Risk Trader

3,942 posts

Posted by Risk Trader > 2023-01-09 15:03 | Report Abuse

Is time to collect....anytime will fly

Risk Trader

3,942 posts

Posted by Risk Trader > 2023-01-09 15:07 | Report Abuse

Next qtr rpt to be out next mth...the result must be better

Raiz368

1,556 posts

Posted by Raiz368 > 2023-01-09 15:52 | Report Abuse

Yes RT..I think buy son is better

Raiz368

1,556 posts

Posted by Raiz368 > 2023-01-09 15:53 | Report Abuse

Now price 0.07 to 0.075 cent.

Posted by SmallSexyPig > 2023-01-09 20:22 | Report Abuse

knowing bursa, if QR is good. share price will fall xD

xiaoeh

2,074 posts

Posted by xiaoeh > 2023-01-09 21:50 | Report Abuse

Posted by trader808 > 3 days ago | Report Abuse
Disagree.
Would appreciate if you could kindly share what is fundamentally good about this company.

Trader888, take a look at Karex when price bottomed around $0.34 alongside ugly qrtly result, i assume same question came out from you then.
I am not saying that same thing is going to happen here but normally prices have already sky high when what u mean good fundamental disclose to the public.

xiaoeh

2,074 posts

Posted by xiaoeh > 2023-01-09 21:54 | Report Abuse

It is what u believe or not believe 5G implementation will benefit SCGBhd matter.

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