SOUTHERN CABLE GROUP BERHAD

KLSE (MYR): SCGBHD (0225)

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Last Price

0.56

Today's Change

+0.005 (0.90%)

Day's Change

0.55 - 0.565

Trading Volume

3,988,800


3 people like this.

1,127 comment(s). Last comment by Kaizenzon 4 days ago

Peace99

2,226 posts

Posted by Peace99 > 2023-07-24 14:44 | Report Abuse

Looks like today waking up....

Peace99

2,226 posts

Posted by Peace99 > 2023-07-27 17:48 | Report Abuse

still got hope, reviving :)

Peace99

2,226 posts

Posted by Peace99 > 2023-07-27 17:49 | Report Abuse

No RE without cables

Peace99

2,226 posts

Posted by Peace99 > 2023-07-28 13:08 | Report Abuse

Agree....yes, I could have put in EPF, but with current prices and the dividend just received, managed to breakeven already! Now expecting it to move upwards from here. TAYOR

Peace99

2,226 posts

Posted by Peace99 > 2023-08-03 11:40 | Report Abuse

Both resistance levels 0.325 and 0.34 broken https://klse.i3investor.com/web/blog/detail/PublicInvest/2023-05-31-story-h-269514991-Technical_Buy_SCGBHD_0225

At 0.345 and warrant at 0.08, glad to say that am in the black now:)

Posted by SmallSexyPig > 2023-08-07 15:27 | Report Abuse

with dividends, warrants, I am still down 4% but still buying for cost averaging. long term, still have faith in this stock and the business plans

Posted by SmallSexyPig > 2023-08-07 15:28 | Report Abuse

also, slowly creeping towards 52 week high. Q2 results seem hopeful

Posted by Yawn.... Zzzzz > 2023-08-08 14:11 | Report Abuse

Scg are hopeless counter, better stay away or keep bleesing

Peace99

2,226 posts

Posted by Peace99 > 2023-08-10 15:21 | Report Abuse

Hmm, sorry, disagree as I'm in the black now and start to have more paper gain as it continues its upwards trends. Seems obvious that the demand for cables will go up in this age of 5G, RE and EV!

Peace99

2,226 posts

Posted by Peace99 > 2023-08-10 15:23 | Report Abuse

sexypig, think you will soon be in the black like me....let's have some faith!

Posted by SmallSexyPig > 2023-08-10 16:18 | Report Abuse

something brewing...

Peace99

2,226 posts

Posted by Peace99 > 2023-08-11 10:49 | Report Abuse

Another 332mil, making total on order book >1 billion! Just a matter of time before up
See also:
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3375712

Peace99

2,226 posts

Posted by Peace99 > 2023-08-11 15:44 | Report Abuse

As far as I can check, this 332mil is the ADDITIONAL amount, i.e. original on 18 July 2022 was 293.8mil, revised to 332.1 mil on 4 april 2023, revised to 422.5mil on 12 May 2023, and so this means 422.5+332.1=753.6mil on 10 Aug 2023. Delivery by July 2024. Can some one confirm? In any case, this is a big Thumbs Up for 南方电缆!

651158

2,377 posts

Posted by 651158 > 2023-08-12 09:21 | Report Abuse

good news but all run away lo

Peace99

2,226 posts

Posted by Peace99 > 2023-08-15 11:30 | Report Abuse

I think ppl will soon (or not so soon?) realise this stock is undervalued...
I believed in & promoted Hua Yang and E&O half year back and turned out right :) .... but also made mistakes on some counters :(

trader808

285 posts

Posted by trader808 > 2023-08-16 22:52 | Report Abuse

1.Nothing will drive up share price except profit and earnings growth. And even so, profit must be sufficient to match the rising share price and sustain it.

2. This happens and very well explains SCG and the reasons why its share price remains lackluster and unresponsive. Even though the company has generated impressive improvement in profit unfortunately, it is inadequate and unqualified for a re- rating.

3. Successfully secured and awarded mega project leading into big order is not earnings. Until orders are transformed into earnings, share price does not move. This takes time and energy and most of all patience. So, the question is can you wait or rather is it worth waiting.?

4. SCG closed at 35 sen today. Do you think it can go up 28.5% to 45 sen. What does it take for SCG to trade at 45 sen?

5. As you are aware, SCG has 800m paid up share capital. Not long after listing it has rewarded its shareholders with 400m free warrant.The exercise price is 27.5 sen and upon full conversion the fully enlarged share capital will be 1.2b shares.

5. SCG whose market capital is far less than 300m is a small company. I therefore would envisage it to trade at Bursa PE of 12.5x and to trade at 45 sen it must generate an EPS of 3.6 sen.

6. Upon full enlargement with 1.2b shares would mean SCG has to generate a profit after tax of 1.2b x 3.6 sen is RM43.2m Considering the profit performance of scg over the last 3 years were between 10.9m to 14.5m, it would be an enormous challenge and incredible feat to achieve 43.2 m. It is realistically unexpected.

7.The enormous share capital structure at its inception has its drawbacks and the reward of free warrant has returned to haunt the share price and its performance in the long term.

8. I am of the opinion that SCG should courageously follow the foot steps of Ptrans and opt for share consideration and avoid being a penny stock.

9 Just talking only.
Happy trading
16/8/23

trader808

285 posts

Posted by trader808 > 2023-08-18 21:30 | Report Abuse

1. That does not mean SCG is precarious and hopeless. In simplicity, it means the opportunity cost of holding SCG is high and hence, if given a choice a serious and wise investor would look for a better alternative in his portfolio management and efficient allocation of resources and capital.

2 What has been lay out is the logic and basis of stock valuation. The value of share is simply EPS multiply by a PE multiple. On a long term prospective of 3 years and beyond horizon SCG must generate 3.6sen EPS or a profit of 43.2 m to worth 45 sen with 12.5x PE multiple.

3. What does this means and how much additional work they need to do?

4. The cable manufacturing and supply industry is highly challenging and fiercely competitive. Some of the big guys in the industry like Sarawak cable, Universal Cable, Leader Cable and others has been down sized,fallen into PN17 and gone into oblivion.

5. SCG is operating under very severely competitive nature of the business environment and facing enormous challenges to withstand the rapidly declining profit margin. In the 4Q 2022 its revenue was 238m and profit was 4.56m. Therefore its profit margin is a miserable 1.9%. Basing on the 1Q2023 the latest quarterly announcement it has a revenue of 240m and a profit of 5.14m. Again the profit margin is 2.1% which is pathetic.

6. It is undeniable, cable manufacturing is tough business. To further demonstrate the cost impact, SCG would need a yearly revenue growth from currently 875m to 2.057B
( 43.2m divided by 0.021) to generate 3.6 sen EPS for its share price to worth 45 sen

7. These numbers are prohibitive and again realistically unexpected.
It would take a seriously patient, uninformed and oblivious investor to stay invested.

8. That's why the funds are not buying and institution are avoiding. The IR is not promoting and the analyst is not briefing. Profit margin of 1.9% is simply unattractive and it means tough business. There is no room and tolerance for error.

9 On a year end prospective, if we annualized the 5.1m 1Q profit the annual profit would be 20.4m or an EPS of (20.4/800) = 0.0255 sen
Applying a PE on the higher range say 15x would price the counter at 38 sen at most.

10. Currently, at 35 sen SCG is somewhat fully valued.
Trade wisely
18/8/23

Hair123

6 posts

Posted by Hair123 > 2023-08-24 10:42 | Report Abuse

Must be full of frustration to call a Sell at 0.29 and see the price up 20% in a down market.

Posted by SmallSexyPig > 2023-08-28 16:20 | Report Abuse

positioned very well for the future, competitive market but SCG making good long term decisions. slow and steady

Posted by damansaraeagle > 2023-09-06 03:22 | Report Abuse

CANNOT GO UP ONE LA

mf

27,818 posts

Posted by mf > 2023-09-06 05:30 | Report Abuse

Dow Jones

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34,641.97

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0.56%

Nasdaq

NASDAQ Composite

14,020.95

-10.86

0.07%

Posted by TradeBursaForALiving > 2023-09-21 22:57 | Report Abuse

The moment it breaks 0.350, it is the time for it to fly.

nelsonlim

696 posts

Posted by nelsonlim > 2023-10-02 09:23 | Report Abuse

looking good. coming i guess

nelsonlim

696 posts

Posted by nelsonlim > 2023-10-02 09:23 | Report Abuse

supporting well

nelsonlim

696 posts

Posted by nelsonlim > 2023-10-02 09:24 | Report Abuse

36/37/39/41

Posted by spidermanchill > 2023-10-02 23:55 | Report Abuse

Scam counter💩

Haleluya

186 posts

Posted by Haleluya > 2023-10-03 14:36 | Report Abuse

Ini kalilah???

Posted by SmallSexyPig > 2023-10-03 15:17 | Report Abuse

52w high - 0.360 - 03 Oct 2023 | 03:00 PM

nelsonlim

696 posts

Posted by nelsonlim > 2023-10-04 09:17 | Report Abuse

Leys goooooo

nelsonlim

696 posts

Posted by nelsonlim > 2023-10-04 09:17 | Report Abuse

Muhibah can lclc

Peace99

2,226 posts

Posted by Peace99 > 2023-10-05 10:06 | Report Abuse

Glad that I trusting SCG :)

nelsonlim

696 posts

Posted by nelsonlim > 2023-10-05 19:49 | Report Abuse

break 37 then only can 39 then 41

nelsonlim

696 posts

Posted by nelsonlim > 2023-10-06 09:03 | Report Abuse

angry ady

nelsonlim

696 posts

Posted by nelsonlim > 2023-10-06 16:15 | Report Abuse

Gogogog la muhibbah. Jgn scg ady

xiaoeh

2,055 posts

Posted by xiaoeh > 2023-10-06 16:24 | Report Abuse

Coming uptrend?

Posted by SmallSexyPig > 2023-10-06 17:07 | Report Abuse

I still think it's slightly below it's fair rating, generally markets trade looking forward so it might climb as high as 0.42-0.43 in the short term.

xiaoeh

2,055 posts

Posted by xiaoeh > 2023-10-12 16:49 | Report Abuse

Buy on news and sell on facts.
Will that happen tomorrow for all stocks risen recently?

Posted by Insidefluential > 2023-10-12 20:31 | Report Abuse

We'll see it breaking 40c soon

trader808

285 posts

Posted by trader808 > 2023-10-22 18:19 | Report Abuse

1.In the last 3 months, the fundamentals of SCG had improved tremendously. It has managed to generate a net cash of 62m from operation and a free cash flow of 29m. The company now has 50.8m in cash and term deposit compare to 21.8m a year ago.

2. More impressively, it managed to reduce its debts from 221m to 186m. It has demonstrated excellent ability in repaying debts plus a positive trend and committed effort to reduce it further in the coming few quarters. The loans and borrowing are financed by banker's acceptance. The gearing has improved and risk is more acceptable.

3. The company has declared and paid Rm2.24m in dividend.

4. It has successfully won more projects and the order on hand has attractively exceeded Rm1.b that would keep the company busy and profitable from many quarters to come.

5. With several cable manufacturers going into receivership and Sarawak cable affected by PN17, SCG has in a short period of time become the leading and preferred supplier of cables in Malaysia. It potential is huge and the prospects is brilliant.

6 The investing public and possibly some funds and institutions have begun to see and recognize the great potential in SCG and its future intrinsic value.

7. Basing on the sudden spike in volume and persistent rise in share price, it is not surprising that SCG already has some impressive big funds or institution added into its shareholders list.
8. To steadfast and die hard investors, scg has begun to shine. Someday you endurance and perseverance will be rewarded. This time it is real. I think so.

9. I have selfishly remain silent and refrain from commenting on the positive and radical change in the fundamental of SCG since the most recent quarter result announcement.

10. It is not entirely a bad thing to get stuck with SCG. It is like been trapped in a terrible traffic jam in your Porsche with a girl friend of wife material.
11. The longer the better.
Happy journey and happy trading
22/10/23

xiaoeh

2,055 posts

Posted by xiaoeh > 2023-10-22 18:31 | Report Abuse

That is why u won't buy at $0.29 level and always enter when price had already shoot up, but no doubt in the safer bets.

minher

316 posts

Posted by minher > 2023-10-25 10:16 | Report Abuse

RHB IB: Southern Cable’s RM1b orderbook provides earnings visibility for next three years

KUALA LUMPUR (Oct 25): RHB Investment Bank Research has valued Southern Cable Group Bhd (SCG) at 50 sen and said SCG’s orderbook, worth more than RM1 billion (1.14x cover ratio), provides earnings visibility for the next three years.

In a note on Wednesday, the research house said with an unyielding need for power and cables, SCG has emerged as a thriving player in this evergreen market, poised for continuous expansion.

It said Malaysia's ambitious goal of achieving net zero emissions by 2050 — including higher uptake of renewable energy (RE) sources and the enhancing of the country’s grid — is expected to be a catalyst for the group’s earnings growth.


RHB IB said SCG recently secured a RM332.1 million contract from Tenaga Nasional Bhd (TNB) for the supply of underground cables and conductors, bringing its year-to-date (YTD) contract wins to more than RM500 million.

“On the back of a solid orderbook and Malaysia’s shift towards using RE, the power grid upgrades, and SCG’s growing export sales and recovering margins, we expect it to record a FY22-25F earnings CAGR of 24.3%.

“Our fair value is derived from 15x FY24F P/E. This is a huge discount to its international peer average for the cables and wires business, given SCG’s smaller market cap, local-centric business, and lower margins,” it said.

However, the research house noted that it is one of the sector’s cost leaders and possesses the widest range of product offerings locally.

“It also enjoys the lion’s share of demand for cables from TNB.

“Key downside risks include its dependence on capex spending by the power industry, escalation of input costs, fluctuation in commodity prices and margin pressure due to competition,” it said.

Posted by Ahmadrazak > 2023-10-27 11:40 | Report Abuse

Strong buying momentum this morning. Should able to break 40sen soon. Huge contract on the way

Peace99

2,226 posts

Posted by Peace99 > 2023-10-27 13:01 | Report Abuse

@Trader808 I like your statements 10&11 summary!
I am keeping a lump of SCG, the longer the better!!

Posted by SmallSexyPig > 2023-10-27 16:45 | Report Abuse

I saw SCG hit 0.4 for the first time in so long today

Posted by pancamatari62 > 2023-10-31 16:57 | Report Abuse

very hard to breakout

xiaoeh

2,055 posts

Posted by xiaoeh > 2023-10-31 18:27 | Report Abuse

How trader808, sell or hold?

Posted by damansaraeagle > 2023-11-01 08:55 | Report Abuse

it will breakout

Posted by pancamatari62 > 2023-11-02 12:18 | Report Abuse

haihhh tireddddd

Posted by niktraderinvestor > 2023-11-03 18:45 | Report Abuse

When qr expected to out?

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